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Does SS amend past year documents when you withdraw your benefits and pay back the funds received - or will I receive a negative document in 2025?

I have withdrawn my SS benefits and repaid the funds received in 2024 and 2025. Does SS amend the 2024 tax filing document to zero, or will I receive a 2025 document showing a negative number? We filed an extension for 2024, so a corrected document showing no income from SS would close 2024 out with a substantial refund.
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1 Reply
rjs
Level 15
Level 15

Does SS amend past year documents when you withdraw your benefits and pay back the funds received - or will I receive a negative document in 2025?

I assume that the "document" you are referring to is your Form SSA-1099. The Social Security Administration will not amend your SSA-1099 for 2024. (Repaying the 2024 benefits in 2025 does not change the fact that you did receive it in 2024.) Just go ahead and file your 2024 tax return as-is.


Your SSA-1099 for 2025 will show the amount that you repaid in box 4. If that's more than the benefits that you received in 2025, shown in box 3, then the net benefits in box 5 will be negative. Box 5 is box 3 minus box 4.


If the negative amount in box 5 is $3,000 or less you get no tax adjustment for the repayment. (That might seem unfair, but that's the law, under the tax reform law that was passed in 2017.)


If the negative amount in box 5 is more than $3,000, you will have two options for handling it on your 2025 tax return. You will be able to either claim an itemized deduction for that amount, or a credit that is determined by a relatively complex recalculation of your 2024 tax return. You would choose whichever option makes your 2025 tax lower. I will not go into detail now about how to do this in TurboTax because the 2025 TurboTax software is not available yet, and there could be changes from previous years. If you are in this situation, and you need help when you are preparing your 2025 tax return, post a new question asking for help. Do not just enter the negative box 5 amount in TurboTax and assume that it will handle it correctly. It won't.

 

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