topic SSA repayment in same year collected in Get your taxes done using TurboTax

SSA repayment in same year collected

Laxdad-33 — Tue, 19 Apr 2022 00:42:02 GMT

In 2021, I started to collect SSA retirement income. After several payments to me, I changed my mind, obtained and filled the rescind/repayment form, included a check for the full amount of money received and dropped it at a SSA office in 11/21. They still have not cashed my check but sent me an SSA-1099 form. As I paid the money back in the same year I received it, do I have to still claim it as income? If so, how do then state that I already repaid the money, so I am not taxed on it?

Re: SSA repayment in same year collected

MaryK4 — Tue, 19 Apr 2022 01:01:55 GMT

Since you did the repayment in 2021, you will enter it with the 1099-SSA to cancel the income. Keep your records in case the IRS has questions, but they will be able to verify the information. (The SSA will backdate the payment when they process it.)

Re: SSA repayment in same year collected

Laxdad-33 — Tue, 19 Apr 2022 03:16:34 GMT

Thank you. Unfortunately, that form in turbo tax starts with box 5 (income) and no box 4 to input benefits repaid. When I called Turbo Tax, her only response was there was nothing wrong with the software and I could consider filing for an extension.

Re: SSA repayment in same year collected

AmyC — Tue, 19 Apr 2022 16:07:30 GMT

The issue becomes can you prove that they received the check in 2021?

If yes, then subtract the amount from your 2021 return as other income and describe it as repayment of SSA.
If no, they you will have to do a claim of right for 2022, if you repaid over $3,000. If you itemize deductions, you can claim $3,000 or more there. If not itemizing, you will want to take a credit against your tax liability. Here are your options and how to do it, see What is a Claim of Right Repayment. See also example on page 36 of Pub 525. You will want to determine which is better for you, the credit or the deduction. If the credit is best, you will need to download the desktop version and move your .data file so you can pick right up where you left off.