Gross income reported in box 1 of a W-2 (if this income were paid on a W-2) would have been $6,000. After Social Security and Medicare payments reported in boxes 4 and 6 of a W-2, you would have netted the $5,600. It sound like the $6,000 is gross income and subject to repayment.
From whom did you receive the overpayment notice? If the disability notice was received from the Social Security Administration, the discrepancy that you mentioned may ultimately be adjusted. If the disability notice was received from an insurance company or private company, it may not be adjusted without you taking other actions.
Also, does the notice state that you are to pay back the $6,000 or that the $6,000 has been paid back in 2022? At this point, the facts are not clear.
If you received taxable income in 2021 and paid all or a portion back in 2022, you may qualify for a claim of right repayment on your 2022 Federal 1040 tax return.
A claim of right repayment occurs when a taxpayer is required to repay income that they had reported and paid tax on in a previous tax year. The repayment must be of funds that, when received, the taxpayer had a reasonable belief he or she had unrestricted access to.
See also this information.
@Khaselden2
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
