how and where to report non taxable payment (for medicare overpayment refund)

[AIN22]

I received a non-taxable payment shown on my SSA-1099 SM.  I know this is for a Medicare premium overpayment for the period June-August 2024 as indicated in a notification letter, (premium was paid in May 2024. I am older than my husband and have been paying Medicare premiums quarterly since 2022).  But this April 2024, my husband decided to apply for SS benefits, and so I was advised to apply for Spousal Benefit as well.  We received a letter from SS explaining the benefits (monthly amount and starting dates, retroactive payment /lumpsum, and moving forward monthly payment, as well as Medicare monthly deduction from SS benefit payment - Starting April 2024, and paid a month later mid-month). My March-May 24 quarterly Medicare was paid in Feb. 2024 and the Medicare overpayment for April/May was included in a spousal benefit lumpsum paid in June 2024.

So, my question is: (1) How/where do I report/record the non-taxable payment in my filing,  should I report all the actual Medicare payments made (the one indicated on my SSA-1099 + my quarterly payments prior to Spousal benefits application) and then report the refund somewhere else (and where?) OR should I only compute Medicare payments minus the refund and report that amount (and where).

Thank you 

[DianeW777]

Yes, report the medicare payments minus the refund you received on your SSA-1099 which will carry to itemized deductions if you use that instead of the standard deduction. It is handled this way because the payment and refund occurred in the same tax year.

If  you choose  you can also use the 'Lump Sum' election if you received any social security benefits in 2024 that actually apply to 2023. It may not apply since the application was in 2024, however if  you did receive any benefits in 2024 for a prior year you can use it.

Be sure to select "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits.  Enter the appropriate amounts for each year when you start that section of your return.   Continue to add each year for all years listed in box 3. There is no amendment required.

1. Open your TurboTax Return > Search (upper right) > type ssa1099 > Click the Jump to.... Link
2. Or Income & Expenses > Retirement Plans and Social Security > Social Security (SSA-1099, RRB-1099)
3. Select Yes you received benefits > Complete your SSA-1099 > Continue > Yes I received at least one lump sum payment for 2023 or earlier > Continue
4. Type a year from your SSA-1099 > Enter the amount received for that year > Continue
5. If you received a Form SSA-1099 for an earlier year enter the box 5 amount, if not enter zero or leave it blank > Continue
6. Enter the filing status for the earlier year > Continue > Select whether you lived with a spouse in the earlier year > Continue >
7. Enter the information from the earlier year return > Continue > 
8. Add another lump sum payment (another year from box 3) if applicable or Click Done
9. Continue to follow the screens until you are back at the Income Summary page

Also enter a zero if your Social Security benefits weren't taxable or there were none in the earlier year(s) (such as for a spouse). If you are using the TurboTax CD/Download version review the Lump-Sum Social Security Worksheet in Forms.  You can also review 'Earlier Year Lump-Sum Worksheet' for each year.

[AIN22]

thank you.

but according to Turbo, Standard deduction is better for us (Filing Jointly.) So, do I still enter actual payments minus refund?