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Level 1

Social security overpayment repayment

My wife had a SSDI overpayment a number of years ago (long story). The SSDI was included in her taxable income at the time, so taxes were paid on it. They are now offsetting our refunds to repay this debt. Does the the "Claim of right repayment over $3000" apply here? We repaid more than 3K in 2018. 

1 Best answer

Accepted Solutions
Level 1

Social security overpayment repayment

Yes, it certainly qualifies and, fortunately, you are already using the Desktop version of the product, because you have to be in that to take this credit if you don't itemize.

If you do itemize your deductions, it's pretty simple to claim the repayment.  

Go to the Federal Taxes tab, 

then Deductions and Credits.  

Scroll down to Other Deductions and Credits, Other Deductible Epenses.  

You'll go through a series of screens that do not apply to you, but just keep going until you come to Any Other Deductions, and say Yes.  On the next screen, you'll see claims of right over $3,000.

The other option is to take a credit without itemizing.  The difficult part of this, for you, is that you would need to recalculate your tax return from the year when the excess was received and it's not clear how long ago that was.  Please read the following answers:

https://ttlc.intuit.com/replies/7063984

https://ttlc.intuit.com/questions/4516769-can-claim-of-right-for-repayment-of-social-security-benefi...#

You would calculate and then enter the credit amount on line 75 of Schedule 5 and write 1341 Claim of right credit on the blank line.

2 Replies
Level 1

Social security overpayment repayment

Yes, it certainly qualifies and, fortunately, you are already using the Desktop version of the product, because you have to be in that to take this credit if you don't itemize.

If you do itemize your deductions, it's pretty simple to claim the repayment.  

Go to the Federal Taxes tab, 

then Deductions and Credits.  

Scroll down to Other Deductions and Credits, Other Deductible Epenses.  

You'll go through a series of screens that do not apply to you, but just keep going until you come to Any Other Deductions, and say Yes.  On the next screen, you'll see claims of right over $3,000.

The other option is to take a credit without itemizing.  The difficult part of this, for you, is that you would need to recalculate your tax return from the year when the excess was received and it's not clear how long ago that was.  Please read the following answers:

https://ttlc.intuit.com/replies/7063984

https://ttlc.intuit.com/questions/4516769-can-claim-of-right-for-repayment-of-social-security-benefi...#

You would calculate and then enter the credit amount on line 75 of Schedule 5 and write 1341 Claim of right credit on the blank line.

Highlighted
Level 3

Social security overpayment repayment

@Anita01 

The links referenced are no longer available.  I have this problem for 2018 and now 2019 as I just received the backpay lump sum and I have to pay my employer's longterm disability insurance company back.  The money received from the long-term disability company was already taxed in 2018 and I do not wish to be taxed on the same dollars again.

 

Thanks!