the offset was for 2015 and 2016 and added up to 32000. I have called IRS office and they told me to call SS and ask for a corrected copy but I have called SS office 3 times and they tell me it is the way it is and I have to claim it. Because of this amount, I don't qualify for the Obamacare that I have had all year so I am owing 7000 back. Yet, I didn't receive this amount in 2017. I only received 12,000.
You'll need to sign in or create an account to connect with an expert.
You have two
tax situations taking place. One
is the social security lump sum benefits and the other is the repayment of
previously taxed income.
Social Security Lump Sum: There is a "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits. Enter the appropriate amounts for each year when you start that section of your return.
The IRS has a special lump-sum distribution calculation that would allow you to be taxed as though the funds were actually received in the year to which they are attributable or as though it were all for 2017. The lowest tax result will be used.
Great news: TurboTax can walk you through that process and calculate the proper tax based on your entries.
Check out the screenshots I have attached to help you. You will need your previous year returns for some of the information.
You can go directly to the area to review your entry by following these steps.
1. Sign into your account and select your current return.
2. Select Search (upper right)
3. Search for ssa1099 and Jump to ssa1099
5. Follow the interview to enter or review your entry for these benefits.
Repayment of Previously Taxed Income: Yes, you can include a repayment on your tax return.
Instructions here are specifically for your repayment with the assumption it's greater than $3000 (if under $3000 TurboTax will walk you through the screens more easily because the option is itemized deduction only).
When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. Each instance of repayment is not considered separately.
If you choose a deduction, please enter it here (Method 1):
If you choose a credit (This can only be done in the Forms mode of the Desktop version of TurboTax), please enter it here (Method 2-only if greater than $3000):
You have two
tax situations taking place. One
is the social security lump sum benefits and the other is the repayment of
previously taxed income.
Social Security Lump Sum: There is a "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits. Enter the appropriate amounts for each year when you start that section of your return.
The IRS has a special lump-sum distribution calculation that would allow you to be taxed as though the funds were actually received in the year to which they are attributable or as though it were all for 2017. The lowest tax result will be used.
Great news: TurboTax can walk you through that process and calculate the proper tax based on your entries.
Check out the screenshots I have attached to help you. You will need your previous year returns for some of the information.
You can go directly to the area to review your entry by following these steps.
1. Sign into your account and select your current return.
2. Select Search (upper right)
3. Search for ssa1099 and Jump to ssa1099
5. Follow the interview to enter or review your entry for these benefits.
Repayment of Previously Taxed Income: Yes, you can include a repayment on your tax return.
Instructions here are specifically for your repayment with the assumption it's greater than $3000 (if under $3000 TurboTax will walk you through the screens more easily because the option is itemized deduction only).
When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. Each instance of repayment is not considered separately.
If you choose a deduction, please enter it here (Method 1):
If you choose a credit (This can only be done in the Forms mode of the Desktop version of TurboTax), please enter it here (Method 2-only if greater than $3000):
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
SMLANZA
Level 2
danjoesam
Returning Member
user5655
Returning Member
ikram1998
Level 2
Dsarno281
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.