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?
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.
Ok, thanks! Will we receive another SSA-1099 for tax year 2021?
Yes, you will receive another form if you receive SSI payments in 2021.
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