My SSA 1099 and my wife's SSA 1099 do not reflect benefits that were repaid and SSA will not send a corrected 1099

[JS-UH60]

I filed for retirement benefits for myself and spousal benefits for my wife and we started receiving those benefits in January 2019. I returned to work in July 2020 and then withdrew my application and my wife's applications for those benefits in August of 2019. I repaid my benefits and my wife's spousal benefits in August of 2019. My SSA 1099 and my wife's SSA 1099 that we received in January of this year are incorrect and don't reflect the repayments of our benefits. After numerous calls and discussions with folks at the SSA, we still have not received corrected SSA 1099s so that we can file our tax returns. One SSA person says they only produce one 1099 per year and that any repayments will be include in our 2020 1099s. Another person at SSA said the repayments are showing up in the massive system and has sent an urgent request for corrected 1099s. I started the process to get the 1099s corrected in January. It is now July and still no corrected 1099s after many calls to get the amounts straightened out. Am I stuck with reporting the numbers on the incorrect 1099s since that is what the IRS receives from the SSA?

[JotikaT2 · Accepted solution]

It depends.

You can choose to extend your tax return if you want to wait for the corrected forms.  The due date would then be October 15th, but you will need to make sure you pay any tax due by July 15th to avoid and late payment penalties or interest if you owe.

Your other option is to file as you received your forms and amend your tax returns if they ever issue you a corrected form.  See the link below for the steps involved in amending your return.

How to amend my return?

Lastly, it is possible they will just issue another form 1099-SSA in 2020 reflecting your repayment.  If that happens, you will need to report it on your 2020 tax return when you file next year.

[JS-UH60]

Thanks for your answer. I've made so many calls to SSA with no satisfaction that I decided to just file with the incorrect 1099s I have and wait until 2021 to see if the repaid amounts show up then. I'll amend later if necessary.