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Jeffrey218
Returning Member

Adjusting for a non-taxable SSA-1099

My mother passed away in early 2019, and she received a limited amount of Social Security income that year, which became part of her estate that passed to me.  I flied a 2019 tax return on her behalf and included this in her income.  Several months later, Social Security clawed back $700 of this  amount, saying they overpaid mom in 2019.  And then, in early 2021, they sent the $700 back with a letter saying they made an error. 

 

 I didn't expect to get a SSA-1099 for 2021 since this was reported on mom's 2019 return, but I just received one.  I know I need to report the income or the IRS will ping my return, but the income should not be taxable to me.  Can I do a negative adjustment to income to back that amount out of my taxable income.  How do I do that in TurboTax?  Can I enter it as a negative adjustment on Schedule 1 - line 8(z)?  If yes, how do I do that?  

 

Thanks much!

 

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2 Replies
Jeffrey218
Returning Member

Adjusting for a non-taxable SSA-1099

Sorry - I meant to say the adjustment would be entered on Schedule 1 line 24(z).  

Jeffrey218
Returning Member

Adjusting for a non-taxable SSA-1099

I did a little more digging and figured it out.  It can be adjusted through the very last income item - Miscellaneous Income - 1099A, 1099C.  You enter the adjustment as a negative number and you have a good number of characters to type in an explanation of the adjustment.  

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