topic SSA benefits received in 2023 and repaid in 2024 in Retirement tax questions

SSA benefits received in 2023 and repaid in 2024

suill — Tue, 14 Jan 2025 01:25:48 GMT

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.

Re: SSA benefits received in 2023 and repaid in 2024

rjs — Tue, 14 Jan 2025 03:42:32 GMT

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.

Re: SSA benefits received in 2023 and repaid in 2024

suill — Tue, 14 Jan 2025 03:58:31 GMT

Thank you vey much, you are an ace.