Repayment of Social Security

Forum|Forum|3 years ago
March 12, 2023
2 replies
35 views

Joint return. Husband and wife both get taxable social security. 85% of total is taxed every year. Husband repays more social security in 2022 for old years than he receives, negative Box 5 (More than combined TP and Spouse received). Not interested in Credit. Repaid is $16,000. I am going to deduct box 4, repaid amount of SSA-1099 on Schedule A. Or do I deduct 85% on Line 16 of Schedule A? Do I need to report Box 3 (current year benefits) of SSA-1099 as his SS received for the year on page 1?

Thank you

ProSeries Professional

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qbteachmt

Level 15

https://www.irs.gov/publications/p915

"What is covered in this publication.

This publication covers the following topics"

"...Deductions related to your benefits, including a deduction or credit you can claim if your repayments are more than your gross benefits."

Don't yell at us; we're volunteers

G

geniusAuthor

Level 3

I have read pub 915. That is how I know all about credit vs deduction and where to take the deduction.

My 2 questions are NOT in pub 915, which is why I posted.

1. Put Box 3 on Page 1?

2. Deduct 100% or 85%?

dkh

Level 15

If you complete the Smart Worksheet at the bottom of the Social Security Benefits Worksheet ,where it gives you the ability to enter information from all boxes on 1099SA , where do the numbers flow to ?

BobKamman

Level 15

You can't net husband's deficit against wife's income.

The repayment was only $16,000? I seldom see a client with annual benefits less than that (with the exception of retired government employees who didn't pay into Social Security). How big a negative number is Box 5?

G

geniusAuthor

Level 3

You are correct. He was a known Public Employee with a very large pension and wife has small SS. He and wife each get about 8k a year SS and he repaid 16k+

I'm not looking to Net. I want to deduct the repayment, Box 4 on A. Someone on this chat said only deduct the taxable amount, ie. 85%. I also feel like I would need to report Box 3, this years amount received on page 1. Can't find these answers in the pub.

BobKamman

Level 15

So it turns out Pub 915 says you can net his negative against her positive. And that still leaves you with a negative? If it's under $3,000 you're out of luck. If more, you can claim it on Schedule A, Line 16, or go through the computations for the Section 1341 credit.

But it's the net Box 5 amount that you deduct. Not Box 4.

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