DawnC
Expert Alumni

Retirement tax questions

No; those amounts are not reported in TurboTax unless the offset or levy was for a deductible expense (uncommon).    If an amount is shown in that legend, either the Treasury Department applied that amount to a debt or debts owed to other Federal agencies; benefits were withheld to pay child support, alimony, or court ordered victim restitution; and/or benefits were withheld to pay debts to the IRS.   Where do I enter a 1099-R?

 

Section 1024 of the Tax Payer Relief Act of 1997 (Public Law 105-30) authorizes the Internal Revenue Service (IRS) to levy up to 15% of each Social Security payment for overdue Federal tax debts until the tax debt is paid.

 

 

Contact the IRS at 1-800-829-7650 to discuss any appeal rights.

The Department of the Treasury (Treasury) can also withhold Social Security benefits to collect delinquent non-tax debts owed to other federal agencies under the Debt Collection Improvement Act of 1996 (Public Law 104-134). Treasury controls this activity and will contact you if you owe a non-tax debt.

 

If you have questions about the levy for a non-tax debt, contact Treasury at 1-800-304-3107.

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