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Repayment of Separation Benefit

This year I began receiving my military retirement on 01/01/22.  In 07/2022 DFAS began recoupment of a Special Separation Benefit (SSB) I received in 1993 when I separated from Active Duty and became a reservist (Per NAVADMIN 189/92).

Since I already paid taxes on this SSB in 1993 (as part of my gross income), can I deduct the current repayment of my SSB from the annual retirement amount I am receiving on my 1099-R so I am not paying taxes twice on the same amount?

If so, how do I document this in TurboTax?

Note: There is no deduction in box 2a (Taxable Amount) from Box 1 (Gross distribution), Box 4 (Tax withheld) is correct and Box 7 has code 7. No other boxes are checked/filled.

 

Thank you.

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1 Best answer

Accepted Solutions
DoninGA
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Repayment of Separation Benefit

To report the repayment of taxable income as an itemized deduction on Schedule A -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Other Deductions and Credits
On Other Deductible Expenses, click on the start or update button


Or enter other deductions in the Search box located in the upper right of the program screen. Click on Jump to other deductions

 

If the repayment amount was $3,000 or less -

On the next screen, click on No (Generation Skipping Taxes)

On the next screen, click on Yes (Less Common Expenses)

On the next screen, enter the amount repaid. Continue with this section until it completes.

 

If the repayment amount was over $3,000 -

On the next screen, click on No (Generation Skipping Taxes)

On the next screen, click on No (Less Common Expenses)

On the next screen, click on Yes (Do You Have Any of These Other Expenses?)

Enter the amount repaid in the box labeled Claim of right repayment over $3,000. Continue with this section until it completes.

 

View solution in original post

2 Replies
DoninGA
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Repayment of Separation Benefit

To report the repayment of taxable income as an itemized deduction on Schedule A -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Other Deductions and Credits
On Other Deductible Expenses, click on the start or update button


Or enter other deductions in the Search box located in the upper right of the program screen. Click on Jump to other deductions

 

If the repayment amount was $3,000 or less -

On the next screen, click on No (Generation Skipping Taxes)

On the next screen, click on Yes (Less Common Expenses)

On the next screen, enter the amount repaid. Continue with this section until it completes.

 

If the repayment amount was over $3,000 -

On the next screen, click on No (Generation Skipping Taxes)

On the next screen, click on No (Less Common Expenses)

On the next screen, click on Yes (Do You Have Any of These Other Expenses?)

Enter the amount repaid in the box labeled Claim of right repayment over $3,000. Continue with this section until it completes.

 

Repayment of Separation Benefit

Thank you for the assistance, exactly what I needed.

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