Box 4 of SSA-1099

Forum|Forum|6 years ago
February 18, 2020
2 replies
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I'm reading what seem to be conflicting information about the handling of Repayments of more than $3,000 in Box 4 of SSA-1099.

My situation is that while receiving SDI benefits in prior years the amount of earnings was determined to exceed the amount allowed resulting in being disqualified for SDI benefits for those years. As a result, payments are being withheld from current monthly benefits and were reported in Box 4 as "Deductions for work or other adjustments" to repay those benefits.

So, do I need to "do nothing" or is the full amount in Box 4 entered as a deduction (or credit) in the Other Deductible Expenses section?

ColeenD3

You need do nothing. The SSA is already handling the situation by deducting it from your current benefits. You have less income reported as a result.

grambetmor10Author

What about the affect on prior years that resulted in taxable SS benefits?

DaveF1006

These would be entered as Other Deductible Expenses section as you mentioned. these are considered itemized deductions so if you are able to itemize, you will be able to claim the deduction. This does not affect your prior year's returns as there is nothing you can do about reducing the taxable SS benefit you received in those years. .

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