Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Social Security Withdrawal Request/SSA-1099 Question
Old 03-25-2019, 06:12 PM   #1
Dryer sheet aficionado
 
Join Date: Jan 2014
Posts: 27
Social Security Withdrawal Request/SSA-1099 Question

My spouse started collecting SS retirement benefits in June 2018 but then we decided to withdraw the request in October 2018 and defer collecting these benefits until a later date. In November 2018 we received a letter from the SSA saying the withdrawal request could only be approved if all SS benefits paid are repaid and we sent SS a check the next day in the requested amount and the SSA cashed this check in the first week of December.

In January we received an SSA-1099 which only showed the amount of benefits received in 2018 but not the amount which we repaid in 2018 such that the net benefits for 2018 was the amount of benefits received and not $0. After numerous calls to the SSA and our regional office in which we were under the impression that my spouse would be receiving a corrected SSA-1099 reflecting net benefits for 2018 in the amount of $0, today we received a "Corrected" SSA-1099 which was identical to the one received in January (i.e., only reflecting benefits paid but not repaid).

After being on hold with the SSA for over an hour and being disconnected before speaking to anyone, I thought I'd ask here if anyone has dealt with this situation before and knows whether I am correct in thinking the SSA-1099 should reflect $0 2018 net benefits.

The only thing I would add is that shortly after speaking to someone in the regional office in February, my spouse received a letter from the SSA approving the withdrawal request. Perhaps it might be the SSA's view that the benefits weren't repaid until the withdrawal request was approved even though they had received their repayment back in the beginning of December but this is only speculation. And, if this were the case, presumably my spouse would be receiving a negative SSA-1099 for 2019 reflecting these repayments.

Any help anyone could provide would be greatly appreciated! Thanks very much.
__________________

CountingDown2014 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-25-2019, 07:21 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 3,070
SSA can be very slow on anything out of the ordinary. Sounds like you have proof SSA during 2018 accepted your return of funds. If that amount equals how much you had received during 2018, if it were me I'd show $0 from SSA on my taxes and include a detailed explanation with my return because if that $0 does not match what's on the SSA-1099 the IRS computer is going to flag your return for scrutiny.
__________________

GrayHare is offline   Reply With Quote
Old 03-27-2019, 03:55 PM   #3
Dryer sheet aficionado
 
Join Date: Jan 2014
Posts: 27
GrayHare - Thanks for your response. My plan is to go with your approach and cross my fingers.
CountingDown2014 is offline   Reply With Quote
Old 03-27-2019, 07:06 PM   #4
Dryer sheet aficionado
 
Join Date: Jan 2014
Posts: 27
As I finalized our return for filing by Turbotax, it appears that there's no way to provide an explanation of the 1099-SSA discrepancy or upload any documents (such as the SSA letter or a copy of our check to the SSA) and Turbotax seems to suggest that these would be ignored anyway during the initial IRS review. So it looks like I am going to have to wait until an IRS audit to address the discrepancy...
CountingDown2014 is offline   Reply With Quote
Old 03-27-2019, 08:28 PM   #5
Full time employment: Posting here.
 
Join Date: Aug 2014
Posts: 972
From a pure paperwork status, once you returned the SS dollars and your now down to 0 actual benefit, there should be no reason for a 1099 to be issued for 0 amount. Now how the difference between the 1st 1099 and your final 0 benefit gets reported to the IRS, I have no idea. Maybe a corrected 1099 and maybe not. Maybe you could call the IRS and ask them how to deal with this BEFORE an IRS audit gets triggered.
CRLLS is offline   Reply With Quote
Old 03-27-2019, 08:35 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 22,017
Quote:
Originally Posted by CountingDown2014 View Post
As I finalized our return for filing by Turbotax, it appears that there's no way to provide an explanation of the 1099-SSA discrepancy or upload any documents (such as the SSA letter or a copy of our check to the SSA) and Turbotax seems to suggest that these would be ignored anyway during the initial IRS review. So it looks like I am going to have to wait until an IRS audit to address the discrepancy...
Yeah, just keep your documentation and you should be all set. Be sure to update us as to what happens.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 03-28-2019, 08:04 AM   #7
Full time employment: Posting here.
 
Join Date: Jul 2015
Location: Beaverton
Posts: 954
Quote:
Originally Posted by CRLLS View Post
From a pure paperwork status, once you returned the SS dollars and your now down to 0 actual benefit, there should be no reason for a 1099 to be issued for 0 amount. Now how the difference between the 1st 1099 and your final 0 benefit gets reported to the IRS, I have no idea. Maybe a corrected 1099 and maybe not. Maybe you could call the IRS and ask them how to deal with this BEFORE an IRS audit gets triggered.
This is correct.
__________________
Jump in, the water's warm.
Bir48die is online now   Reply With Quote
Old 03-28-2019, 09:57 AM   #8
Dryer sheet aficionado
 
Join Date: Jan 2014
Posts: 27
I did speak to the IRS this morning and was told that the IRS is going to go with what the SSA says so to the extent there is a discrepancy between my return and the SSA-1099, that would likely trigger an audit. And, in the event of an audit, the IRS is generally inclined to defer to the SSA (another government agency) so a copy of our check cashed in 2018 may not be sufficient. He recommended I try (once again) to clear this up with the SSA. I also called the SSA (for the fifth time) and someone was going to send a priority message for another corrected SSA-1099 that should be acted on within 15 days but there was no way the person who would review that message could contact me and the person I spoke to said she couldn't tell me what that person would do. The frustration continues...
CountingDown2014 is offline   Reply With Quote
Old 06-24-2019, 05:41 PM   #9
Dryer sheet aficionado
 
Join Date: Jan 2014
Posts: 27
Just an update - today out of the blue we received a second corrected SSA-1099 showing zero net benefits for 2018. At least I have the peace of mind knowing our 2018 taxes are consistent with this revised document so when we do get audited, there shouldn't be an issue.
__________________

CountingDown2014 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Getting a SSA-1099 for phantom SS income omni550 FIRE and Money 8 02-28-2018 04:42 PM
Anybody have their 1099-SSA forms yet? gindie Other topics 14 01-25-2018 01:31 PM
Wife Consulting on 1099 - Can she pay my daughter on 1099 also? retire2020 FIRE and Money 16 11-20-2015 09:16 PM
tax question: SSA survivor income Khan FIRE and Money 5 02-20-2011 07:29 PM
Social Security: New rule for Withdrawal oliverdickens FIRE and Money 10 07-28-2009 10:33 AM

» Quick Links

 
All times are GMT -6. The time now is 08:10 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.