SSDI overpayment for 2020

[taxexempt21]

My husband received SSDI payments in 2020 and was overpaid by $8000. Due to the pandemic we just received the refund letter in 2021 and have repaid the money. Can I deduct the amount of the refund from the income reported on Form SSA-1099 for tax year 2020?

[MayaD]

No, enter the SSA-1099 as it is on your 2020 return and you will report the repayment on next year's tax return since you repaid the benefits in 2021.

[taxexempt21]

Ok, thanks! Will we receive another SSA-1099 for tax year 2021?

[DaveF1006]

Yes, you will receive another form if you receive SSI payments in 2021.

[taxexempt21]

My husband will not receive SSDI benefits in 2021. Will he still get the tax form SSA-1099 even if he does not receive payments? Could they send out a SSA-1099 with the refund on it?

Thanks,

Cheryl

[DaveF1006]

He may receive one that reports the repayment on it. it will depend on the Social Security Administration and they will choose to report this.