Steve M Posted February 16, 2010 Report Share Posted February 16, 2010 My client gave me a SSA 1099 and box 5 shows a negative $1200. He supposedly received some incorrect social security payments years ago and the IRS or SSA is taking it back $1200 at a time per year. How do I show this on the return. Is this a reduction in income, and if so, where do I show it? Steve M Quote Link to comment Share on other sites More sharing options...
grandmabee Posted February 16, 2010 Report Share Posted February 16, 2010 My client gave me a SSA 1099 and box 5 shows a negative $1200. He supposedly received some incorrect social security payments years ago and the IRS or SSA is taking it back $1200 at a time per year. How do I show this on the return. Is this a reduction in income, and if so, where do I show it? Steve M is he receiving SS now? Did he pay tax on the SS when originaly received? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 16, 2010 Report Share Posted February 16, 2010 IF he paid tax on the payments when he got them, the taxable portion could be shown on Line 36. But only the repayment of the taxable part. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 19, 2010 Report Share Posted February 19, 2010 >>the taxable portion could be shown on Line 36<< In my opinion, the repayment of less than $3000 income previously included can ONLY be reported as a miscellaneous itemized deduction (subject to 2% of AGI limitation). In my further opinion, each $1200 should be prorated for the original taxable portion, but I could also understand an argument that you repay the entire taxable portion first. Quote Link to comment Share on other sites More sharing options...
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