topic This sounds a little sketchy to me, as well. If this was... in Get your taxes done using TurboTax

2017 Form 1099-MISC from Chase for refund of overpayment due to miscalculation of repayment plan.

jrgraf789 — Thu, 06 Jun 2019 18:15:40 GMT

Do I have to claim this as taxable income? Chase discovered that they miscalculated the repayment plan for my home equity account. They issued me a check as compensation for payments I made beyond what the plan required to bring my account up to date. Someone in the tax department @ Chase today informed me some people were issued a payment as a convenience payment, but he confirmed my payment was due to an overpayment and a refund for what I overpaid. When questioned why I received a 1099-MISC for my refund due to overpayment he replied because anytime they issue a payment to someone it generates a 1099-MISC. I said if I have to claim it will cost me an additional $600 in taxes. He said if the IRS says I have to claim it to call back, open a dispute to see what they will do for me. This sounds very sketchy to me. I already paid taxes on these funds before I paid it to Chase, this was not for interest or overpayment of taxes, it was a refund for payments I made beyond what the plan required to bring my account up to date.

Does anyone know if I have to claim this on my 2017 taxes and do I have to enter in Turbo Tax as 1099-MISC income? They have it listed as #3 Other Income which is bull. I cannot get a live person at the IRS.

This sounds a little sketchy to me, as well. If this was...

ToddL — Thu, 06 Jun 2019 18:15:43 GMT

This sounds a little sketchy to me, as well.

If this was a reimbursement of after-tax funds you overpaid, you can eliminate the tax effect by entering an offsetting "cost in "other Income.

To report the 1099-MISC "income" (you've already done this):

Enter the 1099-Misc in the Other Common Income section (Enter "1099misc" in the Search Box and Select "Jump to 1099misc")
Indicate that it is a "Reimbursement for Overpayment", that it does not involve work like your main job, and that it did not involve an intent to make money, and is not a recurring payment (received in the past or expected in the future).

The "income" will be reported on line 21 of your return (already done).

To enter the "cost":

Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income")
Continue to the screen "Other Taxable Income". Enter the description as "Overpayment" and the amount as a negative number. These are NOT wages.

A corresponding negative amount will be entered, and line 21 will be zero. See the attached screenshot example (different descriptions, but still offsetting).

This is the correct way to report a reimbursement. Chase is not likely to issue a corrected 1099-MISC.

Thank you so much for your help! You are correct, Chase...

jrgraf789 — Thu, 06 Jun 2019 18:15:45 GMT

Thank you so much for your help! You are correct, Chase is not going to issue a corrected 1099-MISC. They said if I claimed as taxable I would need to open a dispute to see what they will do for me. I was advised that regardless of payment type, their system produces 1099's for all payments. All the money they have they should invest in a new system to know what is taxable and what is not. I can't believe they are allowed to produce inaccurate tax forms and it's okay. Thanks again Todd!

I had the exact same thing happen because of an escrow re...

cbush1971 — Thu, 06 Jun 2019 18:15:47 GMT

I had the exact same thing happen because of an escrow refund.