SSA overpayment repaid

Kathryn1659 — Wed, 26 Nov 2025 18:17:27 GMT

I started getting SSA payments in January but continued working part-time. I reported the income anticipated for the entire year and rather than reduce the amount they send, SSA held all payments - resulting in my needing to return to work full time. I reported the additional anticipated income and they started sending me SSA payments, I asked them to stop and reported so much income that I thought they would have to stop. They sent another payment. I contacted them again and they finally stopped sending payments and sent a note saying I was overpaid for the entire year. I sent a check to pay back all the money they sent but they do not acknowledge getting it and my 1099 will reflect the full amount even though I have paid it back -- they say it takes 60 plus days or more to process the repayment. I have done everything correctly, reported income prior to earning it, reporting even higher income just so they would stop sending me money that I knew I was going to have to pay back - What can I do to keep from paying taxes on money they should have never sent me.

Re: SSA overpayment repaid

NCperson — Thu, 27 Nov 2025 12:33:05 GMT

@Kathryn1659 if the money was repaid in the same year, no problem form SSA-1099 should reflect that and it's easy.

but if the money was repaid this year and you paid taxes on that income in the prior tax year, then there is a "claims of rights doctrine'

if the repayment was under $3000, there is nothing you can do about it. The extra taxes paid can not be reclaimed. That is simply the law.

If the repayment was over $3000, then redo last year's tax return without that income and determine what the extra tax you paid was. You can take a credit for that amount on this year's tax return.

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SSA overpayment repaid

Re: SSA overpayment repaid