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Level 1
posted Jan 13, 2025 5:25:48 PM

SSA benefits received in 2023 and repaid in 2024

I received social security benefits in 2023 and I paid taxes on the amount received on my 2023 return. I repaid 100% of those benefits to SSA in 2024 and have now received a 2024 SSA-1099SM showing the repaid amount as a negative number in Box 5. I itemize for tax purposes and am wondering how TurboTax accounts for this repaid/negative income in 2024, I entered the negative # in Box 5 in TurboTax but TurboTax did not adjust my federal or state tax amount by even a penny. Thank you.

0 2 7865
2 Replies
Level 15
Jan 13, 2025 7:42:32 PM

If the amount that you repaid is $3,000 or less, under the current tax law there is no tax adjustment for the repayment.


If you repaid more than $3,000, since you are already using itemized deductions, the simplest thing to do is claim an itemized deduction for the repayment.

  • Go to Federal Taxes > Deductions & Credits > Other Deductions and Credits > Other Deductible Expenses.
  • The first screen asks if you paid any generation-skipping taxes. If you didn't, click No.
  • The next screen asks if you had any "less common expenses," one of which is repayments of $3,000 or less. You repaid more than $3,000, so click No.
  • The next screen asks if you have certain other expenses. Click Yes.
  • On the next screen, enter the total amount that you repaid in the second box, labeled "Claim of right repayment over $3,000." Then click Continue.
  • The deduction will appear on Schedule A line 16.

 

Level 1
Jan 13, 2025 7:58:31 PM

Thank you vey much, you are an ace.