Question

Is there a place in TurboTax to include an explanation as to my use of a previous 1099 because it is correct and not the current 1099 which is incorrect?

Forum|Forum|2 years ago
September 25, 2023
2 replies
0 views

Social Security Payment Department is overworked and understaffed and is having a hard time getting my 1099 corrected. So I want to file my taxes with accurate information from a correct 1099 and not the information from the incorrect, current 1099. I'd like to explain my use of the previous, correct 1099 in my filing.

TurboTax Self Employed Online

X

xmasbaby0

Employee

No there is no place to put an explanation of what you believe is an incorrect tax document. Sorry---as frustrating as it may be to deal with SSA---if they issued an incorrect SSA1099, you need to sort it out with Social Security. You cannot correct it yourself or expect the IRS to read or honor any sort of " correction" you try to write in.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

fanfare

Employee

For what year is the "previous" 1099?

your SS benefits change every year, and will change again in January.

You can amend your return when SS Admin corrects your document.

@ccran50

C

ccran50Author

I have three 1099s for 2022. The first one only shows the the retirement benefit for 2022. The second one was sent a week after I called for a correction to show that attorney fees were refunded in 2022. And it is a correct 1099, accurately reflecting 2022 events, benefits paid and attorney fees refunded. Then three days later I received one indicating that Social Security paid attorney fees in the exact amount refunded in 2022, which is a false statement. I brought this to their attention immediately upon receipt. Three weeks or so later I got a call requesting that I provide "further proofs." I pointed out that it is logically impossible to prove a negative, i.e., that they did not pay it. Nonetheless I replied by letter that never received it and likely would not receive attorney fees. I also sent an email chain from the attorney, who has not represented me since withdrawing a disability claim in 2021, that indicated they did not receive any funds in 2022. An agent in the payment office was finally assigned to "work on my file" on the 24th of July. I was told that would take sixty days. I called yesterday, and no progress has been made. The correct 1099 reflects a credit, and I wonder if that is sort of an anathema for Social Security. I just wanted to use the correct 1099 I received for 2022 and include an explanation that it is accurate and that the most recent one is inaccurate because Social Security paid no attorney fees in 2022, a fact of which I am certain those in the payment office are quite aware. It is quite strange that the payment office is completely insulated and unaccountable. There is no agent, supervisor or reviewing authority that beneficiaries can talk to.

I will likely end up having to pay a larger tax bill this year. I doubt Social Security will admit this mistake, and I have will have no recourse. Call my representative in Congress??

Hal_Al

Employee

In TurboTax (TT), you can use a work around. Enter the latest version of the SSA-1099, so that what you report for SS income matches what's in the IRS computers.

Later, claim an adjustment (deduction) for the difference. You'll have to do the calculation yourself. For example, if you are reporting $10,000 of SS and the correct amount should be $9000, you'll need to look at the Social Security benefits work sheet for the taxable amount. So, if the taxable amount is 85% (as it is for most people), you will report an adjustment of $850, not $1000.

The adjustment should go on lime 24z of Schedule 1*. For description, use something like "Erroneous SSA-1099 adjustment". For how to enter, see: https://ttlc.intuit.com/community/business-taxes/discussion/re-schedule-1-line-24z/01/3019128#M100623

An Alternative is report the full amount of the SSA, now. Later if you get a corrected SSA-1099, file an amended return.

*Alternatively, the adjustment could go on line 8z of Schedule 1, as a negative amount.   In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to:
-Less Common Income
      -Misc Income, 1099-A, 1099-C
       - On the next screen, choose – Other reportable income - Answer yes to Any other Taxable Income -On the next screen, Enter the number with a minus sign (-) in front. Briefly explain at description. Call it something like "Erroneous SSA-1099 adjustment".

C

ccran50Author

Thanks so much for this detailed explanation of how to correct if and when Social Security admits their error/false statement and sends an accurate and current 1099. I am doubtful that they will. You can read my reply to fanfare above for a fuller explanation of my situation. Again, thank you for taking the time to give these details if and when I can amend.