How to handle repaid benefits not shown on 1099-SSA

Forum|Forum|11 months ago
April 7, 2025
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I filed an application for retirement benefits with SSA in November 2024, and a few days later filed a request to withdraw. However, SSA deposited benefits totaling over $26,000 in my bank account before finally granting my request to withdraw four months later. I repaid the full amount of the benefits, and have bank records showing that SSA cashed my repayment checks. In the midst of all that, SSA issued me a Form 1099-SSA that does not reflect my repayment of benefits. Box 4 states NONE.

I have requested verbally and in writing that SSA issue a corrected Form 1099-SSA. To date, I have not received it.

My questions:

1. Is there a way to file my tax return without paying taxes on the amount I repaid? If so, how do I best do that and lessen the chances of an audit or flagging by the IRS?

2. Is it better just to include the erroneous 1099-SSA in my return and pay taxes on the amount I repaid, and then file an amended return once I (hopefully) receive the corrected 1099-SSA?

Thanks in advance for your recommendations.

DaveF1006

No, here is how you report your Right of Repayment for the amounts you paid back to Social Security.

Go to federal>deductions and credits
Other deductions and credits>other deductible expenses
Scroll past the first screen and in the second screen, you may enter a social security payment of $3000 or less. Here enter $3000. Continue to the next screen.
Next screen asks if you have any of these other expenses. Say yes!!
Next screen you will enter $23,000 under Right of Repayment over $3000.

These are now reported on your return as itemized deductions.

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ecsplwAuthor

Thank you, @DaveF1006 ! Just to clarify, two more questions:

1. In following your suggestions, I assume I do not report the 1099-SSA benefits payment in the income section of my return. Is that correct?

2. Is there a need to include any kind of explanation or additional documentation with my return?

DaveF1006

No, you still need to report the amount that is listed in Box 5 of the form. Additional documentation isn't required but do keep it handy if the IRS has questions about it at a later date.

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