It depends. The most social security income that can be taxed in any year is 85%. However many times it's less than that or even zero. There are a few things you would need to do to see if you are allowed to reduce your income or take a credit. Regardless the full amount of Box 5 must be entered in your SSA-1099 entry in TurboTax.
- Check all prior year returns where you had received social security benefits to see if any of it was taxable (Form 1040, line 6b) to see if you had any taxable amount. If not, you can stop here, there is nothing to do because you did not previously pay tax on any of it.
- If the repayment in any tax year is less than $3,000 there is nothing to do.
- If you had a taxable amount from 1. above and you repaid more than $3,000 for that same tax year you may be able to take a credit or income reduction.
Once you have reviewed this information and your tax returns please update here with any details and we will help.
@gis_emp
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