turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Deciphering Your Tax Forms on Feb 19! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

SSA -1099 Overpayment?

I applied for social security widow benefits around may of 2024 and was approved but a couple weeks later I decided to cancel the benefits because I would have had to quit my full time job for a part time job. I contacted the social security office and they said since I'm cancelling the benefits that I would have to wait for a letter in the mail to pay back what I have received. I started receiving benefits and keep receiving benefits monthly to this day after I called multiple times and the multiple times I've went in person and told the social security office that I have not received the overpayment letter to pay back all the money. I received the tax form SSA-1099 and was wondering if I could skip entering it in my 2024 taxes since I have not used the money and been waiting almost half a year for the letter they keep telling me to wait for.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
ThomasM125
Employee Tax Expert

SSA -1099 Overpayment?

No, you'll have to report the income on your tax return in 2024. A portion of it will be taxable most likely. When you pay the money back in 2025, you can take a deduction or credit on your 2025 return if the amount is over $3,000. When you prepare your return for 2024, you should note the tax due or refund before you enter the social security income. If the repayment is over $3,000 in 2025, you can get a credit for the increase in tax the social security income caused in 2024. So, you'll need to know how much your tax increased when you entered the social security income in 2024.

 

The credit in 2025 is called a Claim of Right and you report in TurboTax as follows:

 

  1. Using the desktop version of TurboTax, bring up the "Forms" mode by clicking on that icon on the menu bar
  2. Choose the 1040/1040SR Wks in the list of forms
  3. Scroll down the 1040/1040SR Wks until you see Part II - Other Payments and Refundable Credits 
  4. Enter the amount of the credit on line 12 (D) Claim of Right, IRC 1341 credit for repayments of prior year income

You can also claim the income repayment as a deduction as Other Deductions on your Schedule A, itemized deductions, instead of taking the credit.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
ThomasM125
Employee Tax Expert

SSA -1099 Overpayment?

No, you'll have to report the income on your tax return in 2024. A portion of it will be taxable most likely. When you pay the money back in 2025, you can take a deduction or credit on your 2025 return if the amount is over $3,000. When you prepare your return for 2024, you should note the tax due or refund before you enter the social security income. If the repayment is over $3,000 in 2025, you can get a credit for the increase in tax the social security income caused in 2024. So, you'll need to know how much your tax increased when you entered the social security income in 2024.

 

The credit in 2025 is called a Claim of Right and you report in TurboTax as follows:

 

  1. Using the desktop version of TurboTax, bring up the "Forms" mode by clicking on that icon on the menu bar
  2. Choose the 1040/1040SR Wks in the list of forms
  3. Scroll down the 1040/1040SR Wks until you see Part II - Other Payments and Refundable Credits 
  4. Enter the amount of the credit on line 12 (D) Claim of Right, IRC 1341 credit for repayments of prior year income

You can also claim the income repayment as a deduction as Other Deductions on your Schedule A, itemized deductions, instead of taking the credit.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question