Line 6a of the 1040 form

[LisaP2]

I have a negative amount in line 1 on the social security worksheet.  The amount on line 1 of the social security worksheet says it is supposed to be entered on line 6a of the 1040 form but line 6a is empty on my form in TurboTax Deluxe. Why doesn't the amount from the worksheet transfer to the 1040 form?

[DoninGA]

Line 1 of the Worksheet is from the SSA-1099 or the RRB-1099 Box 5 amount of those forms.

Is there a negative number in Box 5 of the SSA-1099 or RRB-1099?

[VolvoGirl]

Why is line 1 negative?  Do you have a negative amount on line A or F from SSA 1099 box 5?  

[LisaP2]

The 1099 I have from SSA shows 0 in box 5 because all benefits were repaid, however, I called SSA because the entire repayment was not showing.  I was told that the 1099 system cannot correctly report repaid benefits for prior years.  Benefits received in 2019 & 2020 were repaid in full in 2020 but only the portion for 2020 is reflected on the 1099.  The SSA office told me to enter the correct amount as if it were on the 1099 so I entered the full negative amount and it shows on the worksheet.  But line 6a on the 1040 is blank. 

[VolvoGirl]

Here are the 1040 instructions.  If box 4 is more than box 3 and box 5 is a negative amount, then none of your Social Security is taxable and you do not use the SS Worksheet. See IRS 1040 instructions page 27 3 column second Exception
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[LisaP2]

Yes what is described in the PDF you linked does describe my situation.  Does this mean I cannot use TurboTax to finish my taxes?  Should I complete everything by hand?  Or print what TurboTax has and then go in and correct it where needed?  Not sure how to proceed since it was TurboTax that decided to use the worksheet.

[VolvoGirl]

You don't need to use the worksheet and none of SS is taxable so it should be ok.  The worksheet doesn't get sent with your return.  What do you need to correct?  

[LisaP2]

Well, I wanted credit for the income repaid.  I paid taxes on that SS in 2019 but it  seems that when I repay it, I cannot claim it as negative income even though when it was paid to me, it was counted as income.  It looks like, according to the IRS publication 915, that I can put it on Schedule A but I don't have enough for sch A to exceed the std deduction even with the negative SS.  I just think it's not right that it counts as income when it's paid to me but just tossed aside when I repay it! 

[LisaP2]

Also looks like, according to Pub 915, that I can recalculate the taxes paid in 2019 and can then claim a credit on schedule 3.  That looks like the best option so I'll try that. 

Thank you for your help!

[DanielV01 · Accepted solution]

@LisaP2  That is exactly what you need to do.  This is called a "claim of right" repayment.  In order to claim any credit, you will need to compare with your 2019 return.  In essence, you prepare an "amended return" to subtract out the SS income that you had to repay.  You won't submit the amended return, but you can compare the difference (how much your tax refund increases by subtracting out the repaid SS benefits).  And, as you mention, this tax difference is then claimed as a credit on your 2020 return.  

This Help Article gives further instructions on how to claim this:  What is a claim of right repayment?

[LisaP2]

One last question if anyone knows....My husband's repayment check was cashed in 2020 so I am dealing with it now on the 2020 tax return.  My repayment check was just cashed 3 weeks ago in 2021(delayed due to coronavirus) but repays 2019 & 2020.  I know that the SSA-1099 I get at the end of 2021 will not show the repayment because it crosses tax years.  My question is can I include my repayment check with I recalculate the 2019 taxes or do I wait till next year and repeat this process with my own check when I do the 2021 taxes?  His repayment was $17,251 and mine was $10,752 so both amounts are significant enough to want to claim tax credits.  Just not sure which year to claim mine since the check was cashed in 2021. 

[DMarkM1]

You will get a 1099-SSA that will show the repayment and that is the year you will report. It appears it will be for tax year 2021 from your post.  However, you could get a 2020 corrected 1099-SSA. You should contact the social security office to see which tax year the repayment will be reported in.