OPM Pension Overpayment

[jasdlm]

Client's wife died, and client is receiving pension from Wife's employment. Gov't accidentally paid client initially for his wife's death benefit AND the death benefit of another unrelated person with a similar social security number. OPM called my client, explained that he had been overpaid, and suggested that they take the money back over 36 months out of his current monthly survivor benefit. No interest charged by the Gov't. Client agreed.

1099 shows entire amount paid (including overpayment). Where should I show the amount my client has actually paid back as a deduction?

Thanks.

[cpabsd]

I would put it on line 21 as a negative amount with a statement attached to return explainng the adjustment.

[grandmabee]

I would put it on line 21 as a negative amount with a statement attached to return explainng the adjustment.

I don't think thats the way its to be done. If amount over 3,000. in one year repayment that is a formula you use for a credit. if under 3,000 it goes on Sch A misc Deduction. Look up repayments

[jasdlm]

If it goes on schedule A, wouldn't it be subject to 2% adjusted gross? That doesn't seem right in this case. I'll get the instructions for schedule A and Line 21 and see what I can figure out. Thanks to both of you for responding.