hard to follow with missing information
however, what truly matters is what is listed on 4b - that is what is taxable. sounds like that should be $40k
what is in 4a is simply the gross amount received. it is not necessarily all taxable; to me, whether box 4a shows $80,000 or $120,000 doesn't matter; again, what is important is line 4b only shows $40,000 - because that is what the tax is calculated on.
if the acountant is using software from any of the major players, then assume it is correct - these firms have spent millions and millions of dollars ensuring the tax returns are calculated and presented correctly. Their repulations depend on it.
