overpayment

[mittens409]

i recvd a letter saying that i was overpaid by $1500.00 i recvd the letter oct 21, 2009 i left the company on 9/30/09 i asked my boss in sept if i had time because i was in the hospital from sept 15-19 of 2009 he said everything was fine now i recv this letter saying this money is owed and they want a payment arrangement by 11/1/09 or if one is not set up it will affect my taxes somehow

 

[jharris352]

It will affect your taxes because they will 1099 you for that money. Were you overpaid? If you were, you do owe the money back and the company can sue you to get it back. If you do not think you owe the money then send them a letter explaining your side. It is somewhat rare that a company gets into litigation to recover $1500. Your comment about "affecting your taxes" is really to vague for me to evaluate. If you can find out more I'll comment on it.

 

[Patricia_Young]

No, they don't "1099" you for the money unless the debt is forgiven. If you were overpaid wages, they just remain on your W-2 until the repayment is made. However any portion of the overpayment that is NOT repaid until 2010 will complicate tax matters for both you and the employer, as then you get into W-2Cs and having to claim the federal income tax withheld as an itemized deduction in the following year.

Do you agree with the overpayment amount?