Hello,
My wife was receiving social security disability benefits that ended in 2020. An overpayment amount of approximately $6600 occurred for the 2020 benefit period and we mailed a check in early December 2020 for the overpayment amount. Due to postal service delays and the slow processing speed of the social security office, the check was not deposited until February 2021. The 2020 SSA form was received in January 2020 and shows the entire amount of benefits for 2020 (amount of overpayment is not accounted for). She will not be receiving any social security benefits anymore. Will the social security office send a 1099-SSA form next year with the repayment amount shown? How should I account for this overpayment? Do I pay taxes on the overpayment this year and then claim a credit for next year? Since the check was written in 2020 and the social security office waited until 2021 to deposit it, is it classified as having been repaid in 2020 or 2021?
Thanks,
Christopher
