Money returned to social security

[Steve M]

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

[grandmabee]

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?

[kcjenkins]

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.

[jainen]

>>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.