Thanks for your assistance. I repaid a 2023 social security benefit greater than $3,000 in 2024. I am using the desktop version of Turbo Tax Premier.
Based on a previous suggestion, I tried entering the amount from line 5 on the SSA-1099-SM as a negative value under Wages & Income in the Retirement Plans and Social Security section. The federal tax due did not change. I was wondering if this is a bug in the software. The negative value is included as Social Security - nontaxable income and is subtracted from the Total Income.
Next, I tried the "income reduction" option you suggested, which also resulted in no change to the federal tax due. I suspect this was because I am claiming the standard deduction.
Finally, I tried the "credit" option you suggested by calculating the 2023 federal tax due with and without the social security income. I entered the difference in federal tax due on line D - Claim of Right, IRC 1341 credit for repayments of prior year income. This option did lower my federal tax due by the credited amount.
Did I interpret your suggestions properly? Do I still need to record the repayment amount as a negative value under 2024 Wages & Income?
