All Posts

It would seem that if you are getting the reimbursement and your are limited to only using it for approved medical expenses, then it is not a taxable event. It is part of the bargaining process when you bought and pay for the health insurance. If no restrictions are placed on the expenditure of the "rewards" points or cash, then it is as good as taxable income.

No one at TurboTax can tell you when you will receive child support even if your ex-spouse's refund was seized by the IRS to pay the support.   Only the state or county agency that is enforcing the child support order can answer that.   

@2025isapaintoworkwith wrote: Not good for those of us who need to manage RMD's What do you need to "manage" that requires the program? Aren't your 2025 RMDs based on your account balance(s) from the previous year (i.e., 12/31/2024)?

@2025isapaintoworkwith wrote: It's late November and some of the income areas are not yet updated. I don't believe that is at all unusual as the program is typically in "beta stage" until sometime in December (sometimes probably later).

do you have a second 1099-R?  Any 1099-R form WITHOUT the check mark next to Box 7 should sum to Line 5b.  Any 1099-R form WITH a check mark next to Box 7 should sum to Line 4b.    I suspect you have multiple 1099-R forms.  Or you entered a 1099-R phantom form that should be not entered, 

You get the federal income taxes refunded by taking a special tax deduction in the year you make the repayment, or by claiming a credit under IRC 1341 "claim of right".  The special deduction is included in all versions of Turbotax, but to claim the credit, you need to use Turbotax installed on your own computer from a CD or download so you can make a manual entry on the forms.   You can use whichever method gives you the largest refund.  Turbotax will not calculate which is best for you, you have to do that.   To get state income taxes refunded, you probably need to make a claim of right on your state tax return.  You would have to research how to do that for your specific state.    You can only use form 843 to get a refund of Social Security and Medicare taxes withheld.  1. You can always ask.  I don't know if this would count for an exception.  2. Employment. 3. 1040 4. Print the email and include it with your other documentation.   5. You should attach your calculations for each year separately, showing what your reported W-2 wages were, what the withholding was, what the wages should have been according to your employer, and what the withholding should have been (box 4 and box 6).  Remember that box 4 has an annual maximum, so if your income was, for example, $200,000 and should have been $180,000, the repayment will not actually result in a reduction of your box 4 social security tax or a social security tax refund, since both the original and corrected wages would be more than the social security max.  Box 6 withholding does not have an annual maximum.    But because of how social security withholding is calculated, you need to consider each year separately and not as one lump sum.     Your package should include a clear letter of explanation, copies of any correspondence from the employer about the need to repay the wages, including the fact that they will not be processing a refund of social security and Medicare tax.  Include your calculations for each year, and include copies of your W-2s. I would also include proof of the repayment of wages as a lump sum (canceled check or copy of electronic receipt).