Question

SSDI Overpayment Taxes

Forum|Forum|6 years ago
January 14, 2020
1 reply
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I'm trying to finish my Girlfriend's taxes and we've got an issue. She was previously on Social Security Disability but has returned to work. Her final payment was supposed to be back in July 2019 but the payments have kept coming despite repeated calls and visits to SSA. We've been told the payments would be halted in August, September, November, and December but they keep coming.

We've been putting these over payments away in a separated savings account for when SSA does finally come and ask for repayment. To make matters worse she received massive, unexpected, lump-sum payment that she has never seen before in the past.

These over-payments and lump sums, combined with her current earned income have pushed her in to the 85% taxable benefits category, when previously they were not taxable at all. This has turned a nice tax refund in to a federal tax bill due in the thousands, which she definitely can not afford right now. What can we do? IRS and SSA are no help.

H

HelenC12

Please see the following answers to a previously posted question that relates to your situation:

If your girlfriend has a tax liability (amount due,) because of the additional SSDI income, and she is not able to pay the amount, please see the following TurboTax FAQ: What if I can't pay my taxes?

[Edited 1-15-2020 | 12:52 pm PST]

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