receipt of SSI for past yrs, repay of 3rd party sick pay

[schirallicpa]

Client received large sum of money from social security in 2008 and subsequently had to pay Aetna for 2006 and 2007 and part of 2008 3rd party sick pay.

Is this simply a matter of amending 06 and 07 and requesting refund?

She had some paperwork regarding the Sec 1341 right of claim. Does that come into play here?

Thanks for your help.

[kcjenkins]

Yes, it is a 'claim of right' so you need to figure it both ways, then do the one that gets her the best tax outcome, overall. It is often the 'claim of right' treatment that is the best, but not always. Don't forget to do the 'lump-sum worksheets on the SS payment, also.

[schirallicpa]

You're awesome. Thank you!