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Reduce 2018 AGI by returning all SSA benifits?

I’m less than $2000 over the AGI limit for repaying all my healthcare subsidy. I can’t reduce my 2018 income by making an IRA contribution because we are both retired with no earned income. I’ve been getting SSA payments for less than six months, and I am still in the time limit to return all the SSA payments received and cancel my application. If I do that, does that reduce my 2018 income? Surely it doesn’t get processed as a credit on my 2019 income…I figure there isn’t time to complete the process by April 15 so I would file for an extension and pay tax based on what I expect to owe after returning the SSA income. Can I do this? Does anyone know any thing else I can do this year to reduce last year’s income?

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Level 15

Reduce 2018 AGI by returning all SSA benifits?

A repayment made in 2019 will not reduce the taxable amount of Social Security benefits on your 2018 tax return.  It will instead reduce the gross amount of your 2019 Social Security benefits, or if the repayment is more than the amount of your 2019 benefits by more than $3,000, you can use a claim of right on your 2019 tax return.

See Repayment of benefits in :https://www.irs.gov/pub/irs-pdf/p915.pdf

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3 Replies
Level 15

Reduce 2018 AGI by returning all SSA benifits?

Do you have Medicare?
New Member

Reduce 2018 AGI by returning all SSA benifits?

Rats. I was afraid of that. A deduction in 2019 won’t help me. Thanks for responding.
Level 15

Reduce 2018 AGI by returning all SSA benifits?

A repayment made in 2019 will not reduce the taxable amount of Social Security benefits on your 2018 tax return.  It will instead reduce the gross amount of your 2019 Social Security benefits, or if the repayment is more than the amount of your 2019 benefits by more than $3,000, you can use a claim of right on your 2019 tax return.

See Repayment of benefits in :https://www.irs.gov/pub/irs-pdf/p915.pdf

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