The Ramsey Show Highlights My Boss Overpaid Me $48,000 and Now They Want Me To Pay It Back
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Jul 21, 2025 A listener grapples with a $48,000 payroll error and the stress of potential repayment. The discussion dives into the chaos of tax implications related to such overpayments, raising questions about net versus gross pay. It sheds light on personal finance management and offers practical advice for navigating the murky waters of tax laws and employer blunders. Tune in for a mix of real-life frustrations and financial wisdom!
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Payroll Overpayment Story
- A caller was accidentally paid $48,000 gross by her large employer due to payroll error.
- She reported it before receiving but still got $28,000 net and now faces repayment demands crossing tax years.
Repay Net Overpayment Only
- Pay back only what you actually received, not the gross error amount.
- You should get a tax refund for the extra taxes paid on the erroneous income when filing your tax return.
Use Amended Returns to Recover Taxes
- Write a check for the net overpayment amount currently held.
- File an amended tax return and get your employer to send a corrected W-2 to recover excess taxes paid.