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Returning Member
posted Jan 21, 2025 8:56:40 AM

repayment to SSA Box 5 of ssa-1099 states NONE

We have been repaying an overpayment to SSA.  Last year we showed a negative amount in Box 5 and successfuly filed the 2023 return.

This year we paid back 100% of the years benefits;

Box 3 = $8000.00

Box 4 = $8000.00

Box 5 = NONE

How do I claim the $8000.00 we paid back to the SSA.  All of the previous answers tell me to claim on a scedule A or as a Misc. deduction the negative amount in box 5.  I did not see a method to claim when Box 5 ststes NONE?

0 3 1346
3 Replies
Expert Alumni
Jan 21, 2025 10:42:14 AM

It depends. You may either claim a deduction or a credit but the process can be lengthy.  Here are steps for both.

 

To take a deduction.

 

  1. Login to your TurboTax account or open your tax return.
  2. Click on Federal Taxes and then Deductions & Credits.
  3. Locate the section Other Deductions and Credits (you may first need to click on show all tax breaks if working online or I’ll choose what I work on if working in the installed desktop version.)
  4. Click Start (or Revisit) beside  Other Deductible Expenses.
  5. A number of questions will appear on the upcoming screens. You are looking for the one that reads Claim of right repayment over $3,000. Click yes when you see this screen. v
  6. Enter the amount of the repayment in the box Claim of right repayment over $3,000 and click Continue.

To apply the credit, you will need to switch to the Turbo Tax software program because you will to enter information on forms that are provided with the product. You won't be able to perform these steps in Turbo Tax online.

 

  1. The credit can only be applied using the TurboTax Desktop product installed on a computer, in the Forms mode.
  2. Switch to Forms mode by clicking on Forms icon in the program.
  3. In the list of forms on the left click on 1040/1040RSR Wks above the Form 1040 itself.
  4. Scroll down to Other Credits and Payments Smart Worksheet (near the bottom) and enter the amount that you have computed on Line E Claim of Right, IRC 1341 credit for repayments of prior year income.  (Schedule 3 and zoom right to the worksheet and easily entered)
  5. Click on the Step-by-Step icon in the upper right corner to return to the interview mode and finish working on your tax return. 

Note if you do not have enough other expenses to itemize this year, you will not be able to take a deduction.

Returning Member
Jan 23, 2025 5:45:27 PM

Thank you for your answer and opinion.  Can you provide a referance for your reply? IRS pub 915 does not seem to address this problem.  I fully understand your reply as I have been doing my own taxes for over 65 years with 2 businesses included.

Sorry for the follow-up BUT need to see your referance.

 

Expert Alumni
Jan 24, 2025 5:10:28 AM

It depends. I used a couple of sources to complete my answer.

 

IRS Publication 915   page 15  Look under Repayments more Than Gross Amount.  Read the entire section.

 

Claim Right of Repayment  Gives more a a detailed step sequence. Excellent Turbo Tax source.