cancelled SS and 2020 taxes

[BoodaGazelle]

DW started, then stopped SS during 2020. We literally returned the check along with the form as soon as we got it.

We then never heard a word back, or got any type of acknowledgement that she was now *NOT* on SS. In fact, SS did not cash the check for 7 months, and DW called at least twice about it.

So now I am getting ready to do my 2020 taxes, and I have a form SSA-1099 that indicates that we received a SS payment.

How should I handle this when Turbotax asks if I received any SS payments?

DW says I should simply say "no", but I am not sure.

Any thoughts?

P.S. Logging onto her SSA account, her "replacement 1099" also does not show the repaid amount.

Thanks,

Mitch

[cathy63]

What's in box 4 of the 1099-SSA? If that is $0, then call SS and see if they can issue a corrected 1099-SSA that shows the repayment, or if it will instead be on a 2021 form. What will probably happen is that you should pay the tax this year and then you'll get a 1099 next year that shows the repayment.

IRS Pub 915 has info about what to do next year if you receive a 1099 with negative total benefits. https://www.irs.gov/pub/irs-pdf/p915.pdf

[BoodaGazelle]

Box 4 says "NONE".

I would prefer to have a corrected 1099 this year... they had the returned check since 02/19/2020!

[Philliefan33]

If you include the amount in her 1099-SSA on your tax return, does it affect how much SS becomes taxable? If not, there is little reason to wait for a corrected form. It doesn’t matter.

If any amount of SS is taxable on your return, you need to get this resolved.

I

[BoodaGazelle]

@Philliefan33 - we have no other SS income... we obviously thought we would be starting DW's, but changed our minds. As painful as it will doubtless be, she will try and call and at least see what they say tomorrow.

[MC1550]

We have been working with SS to obtain a corrected 1099. There were errors on both of our forms including total benefit amount for the year along with withholding and Medicare payment errors(all under reported).

I called a few times and finally ordered a corrected 1099. They took information and said it would be 30 to 45 days before I would receive it. That was three weeks ago. So, don't expect a corrected one unless you formally ask for it with a phone call.

I checked yesterday on the SSA website and my 1099 was corrected. I will look for it in the mail or use the 1099 form off the website to file my taxes.

[pb4uski]

First, contact SSA and see if they can issue a corrected SSA-1099 form. I would think that Box 3 should be the amount of the check, Box 4 should be the amount of the check that was uncashed and Box 5 should be $0.

I think I would input $0 as the amount on line 5... if you don't get a corrected 1099-SSA form then the IRS will question it and you'll have to explain it.

[BoodaGazelle]

Absolutely box 5 should be $0. I refrained from ranting about the 7 months they had no idea where our refund check was. It seems certain that this 1099 mixup is also somehow related to that... anyway, we will call tomorrow and see what we can find out.

For any film buffs out there... when this happened, DW and I looked at each other and say "Brazil".

[BoodaGazelle]

For everyone's amusement. DW called SS last Monday... we checked online today, and the 1099 was already updated! But wait, there's more. It was off by two decimal places. Instead of the $1688 that we refunded (they cashed), they put in for box 4: $16.88

DW will call again tomorrow!