Box 4 of SSA-1099

[grambetmor10]

I'm reading what seem to be conflicting information about the handling of Repayments of more than $3,000 in Box 4 of SSA-1099. 

My situation is that while receiving SDI benefits in prior years the amount of earnings was determined to exceed the amount allowed resulting in being disqualified for SDI benefits for those years.  As a result, payments are being withheld from current monthly benefits and were reported in Box 4 as "Deductions for work or other adjustments" to repay those benefits.

So, do I need to "do nothing" or is the full amount in Box 4 entered as a deduction (or credit) in the Other Deductible Expenses section?

[ColeenD3]

You need do nothing. The SSA is already handling the situation by deducting it from your current benefits. You have less income reported as a result.

[grambetmor10]

What about the affect on prior years that resulted in taxable SS benefits?

[DaveF1006]

These would be entered as Other Deductible Expenses section as you mentioned. these are considered itemized deductions so if you are able to itemize, you will be able to claim the deduction. This does not affect your prior year's returns as there is nothing you can do about reducing the taxable SS benefit you received in those years. .

[grambetmor10]

So I enter in the Turbo Tax section "Claim of Right repayment over $3,000" so it transfers to line 33 of Sch. A, correct?

[JohnB5677]

For tax year 2019 it will show up on Schedule A line 16.

[linn7387]

I see that they were asking about Box 4 on Form SSA-1099 over the amount of $3000, what about under $3000?   I repaid benefits in the amount of $2358, so does that need to go anywhere on my return? Thanks

[DoninGA]

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@linn7387 wrote:

I see that they were asking about Box 4 on Form SSA-1099 over the amount of $3000, what about under $3000?   I repaid benefits in the amount of $2358, so does that need to go anywhere on my return? Thanks

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The box 5 amount is entered on your federal tax return. Box 5 is the result of box 3 minus box 4.