I applied for Social Security Benefits in 2020 and received 3 payments. Then I submitted a withdraw request and paid social security back. How do I show this in TurboTax so I don't end up paying taxes on money I paid back?
You'll need to sign in or create an account to connect with an expert.
wait for the SSA-1099 from Social security.
if it was in the same year as the payment there should be no issue the SSA-1999 should reflect the net
if in a subsequent year and the amount repaid was $3,000 or less then under current tax laws you do not get a deduction or credit. in effect, you're taxed as if it was never paid back.
if over $3,000 then. claim a credit for the amount repaid computed as follows
recompute your tax for the year received as if it had not been received. the difference in taxes (original vs recomputed) is the credit to claim in year of repayment. it goes on schedule 3 line 12d and indicate as "IRC 1341".
wait for the SSA-1099 from Social security.
if it was in the same year as the payment there should be no issue the SSA-1999 should reflect the net
if in a subsequent year and the amount repaid was $3,000 or less then under current tax laws you do not get a deduction or credit. in effect, you're taxed as if it was never paid back.
if over $3,000 then. claim a credit for the amount repaid computed as follows
recompute your tax for the year received as if it had not been received. the difference in taxes (original vs recomputed) is the credit to claim in year of repayment. it goes on schedule 3 line 12d and indicate as "IRC 1341".
Super Helpful. I paid it back in the same year (mailed the check in October), but the check didn't clear my account until yesterday so it is possible the SSA-1099 will not reflect the net ($0). Either way, now I know how to deal with. Thanks!!
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
cabg
New Member
uniformgc1177
New Member
mcr12121212
New Member
Wendylynn21
New Member
jagunlabi
New 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.