Question

Question about SS Benefits Repaid but Not Reported on 1099

Forum|Forum|5 years ago
January 29, 2021
1 reply
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I have an interesting situation that I'm trying to figure out how to report on my taxes. I received my 1099 from SS that shows benefits paid but does not include benefits that I repaid. The repayment is greater than the income reported for the latest tax year. Most of the repayment was from the previous tax year. The repayment was made in late spring/early summer but was never processed by SS. There was a lengthy period where they had not processed payments due to the pandemic. They didn't restart processing until early fall and are working through a huge backlog. As a result, my check to them is still outstanding. They have yet to deposit the payment. How do I account for that payment when I file? It seems wrong to require me to pay taxes on the income when I have refunded that money but they haven't gotten around to processing it. It has taken so long that my bank may end up rejecting the deposit if/when it finally happens. Any advice on this would be appreciated.

AmyC

Employee

When you repay over $3,000 in a different year, you can claim the difference in tax for a credit.

Normally, we go by the date mailed as the payment date. My concern is that if your check bounces, that would not be an accurate payment date.

You have two choices now:

Be sure the check does not bounce, be sure you can prove your mailed date, and claim the money as paid back. This is the only real option if less than $3,000.
Claim the full income this year, next year claim a credit for the difference in taxes this year. Please see example and full details in my other post.

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