My uncle had cancer operation in 2008. In 2008, he received W2 from Prudential Insurance (a third party administrator of benefit for his company he worked for) for sick pay of $13k while he was out on medical leave. He is 63 yrs old in 2008. Later in late 2008, he filed and also received social security. During Dec-08, Prudential notified him that he was overpaid and so they took $5k out of his bank account in Jan 7th, 2009 but his W2 was not corrected. Can I report the $5k of repayment of benefit in 2008 tax return on Schedule C as other expense or please help on where else in the 2008 tax return can I report this $5K they took from him ?

Any help is appreciated