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repayment of social security benefits

We repaid $525.00 back to social security from previous years.  We were taxed on this amount.  Should we get a tax credit for the amount we sent back.  No longer receiving social security
  • Since my repayment is $10,500 can I claim this as a deduction of Line 23  for itemized deductions?
  • This is an old thread. Please ask a new question for a better response.
Effectively, you probably cannot get it back. Because the amount is less than $3000, you only option is an itemized deduction subject to the 2% of AGI threshold; which for most people means no net deduction.

 This situation is  described in IRS Publication 525. pgs 36-37.  You can take a  misc itemized deduction Or you can take a credit. The credit is computed by refiguring the tax return from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return.  In the forms mode (the forms mode is not available in the on-line versions of TurboTax[TT]), you can use the line 70 smart work sheet to enter the credit amount on line 70; select itm F, claim of right under IRC 1341 for repayments. TT will  enter "I.R.C.1341" in the margin of form 1040. TT does not do the calculation or compare it to the alternate deduction.
So, the taxpayer  has the option of either claiming the credit or deducting the repayment as a miscellaneous itemized deduction, whichever provides the greater benefit. But, you cannot file an amended prior year return. If the amount is $3,000 or less, only the  miscellaneous itemized deduction is allowed and is subject to the 2% of AGI threshold; it goes on line 23 (instead of line 28, for repayments greater than $3000) of schedule A.
  • I'm in the same situation - we repaid $2200 in SS benefits.  Where do I enter that?  I tried entering it in the "other deductions" section, but because it was less than $3000 it wouldn't accept it.  Thanks.
  • I am also in the same situation repaying $2,400 in 2011.  All the information I have read sttates that the repayment is not subject to 2% limitation...even TT, but I have no idea where to claim this amount where the 2% limitation does not apply.
This is posted on TT Support:
Form SSA-1099 / Form RRB-1099 Repayments: If repayments of social security benefits result in a negative amount in Box 5 on Form SSA-1099 or RRB-1099, you may be eligible to take a deduction for this amount. The program does not automatically calculate this deduction. See IRS Publication 525 for more information.
See above. The 2% limit applies if the amount is less than $3000
    Since my repayment for social security if $10,566.00 so I can claim on line 23 of itemized deduction.
    • Line 28 for repayments in excess of $3000
    • No, you get the line 28 deduction which is better. You could claim the line 70 (form 1040) credit instead, but TurboTax is not capable of doing that calculation.
    • See bottom part of this:
    • This is great...I really appreciate the info......
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