What forms must an employee file with the IRS to correct a wage overpayment repaid in a subsequent calendar year?

Author: Alice Gilman

The employee may have to file Form 1040-X, Amended U.S. Individual Tax Return, with the IRS. However, the employer must first give the employee a letter or other documentation certifying the gross amount and date of repayment so that the employee can claim an itemized miscellaneous deduction of this amount on Schedule A of the Form 1040, U.S. Individual Tax Return, for the amount filed for the year of repayment.