Cash Settlement in 2013...Recieved w2 in 2016? In 2013 I sold a severance pay claim to a liquidator and they gave me $36K cash. I claimed this income on my 2013 income taxes and paid the appropriate tax. In 2016 the settlement was closed and the amount of the final claim was $10K. I then recieved a W2 for the $10K in 2016 but since I sold my claim in 2013 I am actually not getting $10K in 2016? How do I report this W2 on my 2016 taxes as I in theory already paid the taxes in 2013 and am not receiving $10K in 2016? How do i get a refund on the taxes paid against the 10K in 2016 that I paid in 2013?
Please advise
Paul |