Repayment of Social Security benefits in a subsequent year

[dn2021]

I completed form SSA-521 to withdraw my social security benefits in late 2021 but will not be repaying the funds until 2022.  I am sure my 2021 SS tax statement will show the benefits as income for 2021.  How is this handled?  Do I show the entire amount as income for 2021 and then take a credit after repayment in 2022? Or do an amended 2021 return after the funds are repaid?  I saw an earlier answer to this question but not sure if it is still current as some of the IRS website links did not work.  Thanks.

[Mike9241 · Accepted solution]

unless the 2021 reporting form is net of the repayment (doubtful), you report what's on the form. due to a change in the tax laws effective 2019-2025 in the year of repayment, it must be over $3,000. otherwise, you get no tax benefit.  (REG 1.1341-1(a)

if over $3,000 you can take as a deduction on schedule A on the line not subject to the 2% limitation. denote as IRC 1341 repayment

OR
recompute the taxes in the year you received the payment by excluding the repayment. the decrease in taxes is taken as a credit on schedule 3 (?) (line ? for 2022)  denote as IRC 1341

[Hal_Al]

You may NOT  amend the  2021 return after the funds are repaid.  Your 2 choices are as described by Mike9241.

The old post is basically still valid, except there is no longer a tax break for repayments of $3000 or less.