Withdrawal of Social security application

[craiganderson27]

I want to withdraw my application for Social Security.  To do so I have to pay back any benefits I have received.  How is this treated for federal tax purposes?

[Opus 17 · Accepted solution]

For benefits paid in 2023, that are repaid in 2023, the social security administration should report that on the 1099-SA and only the net amount, if any, is counted as income.  For benefits paid in 2022 that you repay in 2023, you would follow the procedure for repayment of prior income.  If the amount is less than $3000, you can't deduct it, you're just stuck with it.  If the amount is more than $3000, there is a procedure described in publication 915.  We can help you perform the procedure in Turbotax when it is time to file your return.

https://www.irs.gov/forms-pubs/about-publication-915

[craiganderson27]

Thank You. That was very helpful.