If I apply for social security this year (2019) at age 68, get a job later and decide to stop SS and return the money in the same year will I have to pay tax on it?

[jjxburke]

I am no longer working but still looking for a job. If I do get one and decide to defer my SS income by stopping it I understand that I will have to repay all of it. If I stop SS income and repay the money the same year, how is the income treated tax-wise?

[MichaelL1 · Accepted solution]

Yes - you can claim a repayment of social security benefits.  The way repayment is claimed depends in which year income was repaid and how much the repayment was.

If you repay income in the same year(such as Social Security benefits) you can net the repayment amount against the amount reportable as income.

Note: however Social Security is very slow to stop it and accept the money back.  I did this myself and wrote them a check, and they returned the check and billed me later, which put it into the next year.  So be careful if you do decide to collect now. 

Also you are at the age where you can earn as much as you want do, and not have Social benefits reduced, you would however have a greater SS check when you are 70.

A taxpayer who repays an amount that was reported as income in an earlier year may claim a tax deduction or tax credit for the repayment in the year the income is repaid.

If amount of the repayment is:
 
$3,000 or Less. Claim a miscellaneous itemized deduction on Schedule A (subject to the 2%-of-AGI limitation). If the taxpayer does not itemize, the tax benefit is lost." The data entry is located in the Deductions/Credits section.

Repayment over $3,000. If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). However, you can choose  to deduct it as a deduction or a credit. You may choose the method that benefits you most.

[Pookie333]

I retired at full retirement age and am working full time.  just trying to find out how much I will pay or not pay in taxes on my added social security income.  Any suggestions

[Critter]

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit is $16,920 —for 2018 it will be $17,040—for 2019 it will be $17,640)  After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare. 

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable