Ask Terry Questions A repayment of a overpayment in 2023

A repayment of a overpayment in 2023

By Terry Savage on December 14, 2023 | Wild Card

I retired early, and received an incentive to have retired early. As a turned out the money I received was given to me in error. I had to pay that back in 2023. I received the money in 2021 and 2022. The problem is I was told by my pension board that I would not receive credit for returning that lump sum of cash to them which would reduce my income in 2023 for my taxes.I wanted to make sure that was how it supposed to work.

Terry Says

Whoa! They paid you a check, and sent you a 1099 –and you paid taxes on it??? And THEN you returned it?
Or did it all happen in a week or two, and was never reported as income to the IRS?

That makes a big difference in the current tax situation.

If I did describe it correctly, I think a journalist’s call to the pension board is in order! Please write back to the email you receive saying your question has been answered. Send me your phone number, and get a name/contact # for someone at the pension board. We can set up a time to call together. Nothing angers me more than organizations that diss their own members!!!



a personal
finance question