Skip to main content
Level 3
February 15, 2021

Third Party Sick Pay

  • February 15, 2021
  • 1 reply
  • 5 views

I have a new client that received Third party sick pay in 2019 but had to repay a part of it due to an overpayment. I'm looking for guidance on how to report the amount they had to pay back. Do I amend the 2019 return or is there somewhere we can account for it on the 2020 return? I'm thinking I can do the same as if someone pays back unemployment after the fact, but would like more input. Thanks in advance

    This topic has been closed for replies.

    1 reply

    rbynaker
    Level 13
    February 15, 2021

    See the section on Repayments:

    https://www.irs.gov/pub/irs-pdf/p525.pdf

    If you have a follow-up "how do I enter" question, come back and tell us what software you're using.

    Rick