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TaxRobin
TaxRobin, Tax Preparer
Category: Social Security
Satisfied Customers: 13328
Experience:  15+ years in tax preparation and instruction
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Regarding the SSB and recoupment from my disability. I have

Customer Question

regarding the SSB and recoupment from my disability. I have been paying since 1996 and think I should be done. SSB = app 35000 but I received $25000 approximate
JA: Thanks. Can you give me any more details about your issue?
Customer: I only have 10% rating = $133.00. I do think I should be done. I am trying to locate a number to check the balance. But I also believe the recoupment should be at $25,000 since it was taxed beforehand
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Submitted: 10 months ago.
Category: Social Security
Expert:  TaxRobin replied 10 months ago.

Hello

If you received Special Separation Bonus (SSB) and the later qualify for retired or retainer pay, you would have been required to repay the full gross SSB paid to that date.

When they recoup SSB payments, they treat it like a pre-tax deduction. That is, they would have reduced your taxable income by the amount they deducted for the recoupment each month.

Because they recoup the gross amount you would have claimed a repayment of the amount when you filed your taxes for each year.

It is too late to go all the way back to 19996 and do this but for any year that you repay a taxable amount for a previous year, you can claim that as a reduction for the current year that the payment was made. It is generally taken on Schedule A but you could have claimed a credit in the year of repayment on your federal return.

This is done by recalculating tax for the year you received the income, but don’t include the income you repaid. The difference in tax – with and without the repaid income – is the amount of your credit. Report this credit on the “total payments” line of your federal return (for the year of repayment) with the reference “I.R.C. 1341.”

Like I advised, you cannot go back and amend your returns all the way to 1996 but you could go back 3 years and amend and then for 2015 show the amount you repaid in 2015.

If you wish to speak to them about your balance you can call

Customer Service

***-***-****
M-F, 8 a.m. to 5 p.m. ET

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Expert:  TaxRobin replied 10 months ago.

Now that you viewed my response, please post below

Customer: replied 10 months ago.
My question was about how can I find out about the balance owed from the SSB. I am not concerned at all about the taxes that I lost. Can you answer my original question, or issue a refund?
Expert:  TaxRobin replied 10 months ago.

I posted the contact info for requesting the balance.

***-***-****
M-F, 8 a.m. to 5 p.m. ET

Customer: replied 10 months ago.
Honestly that is still not the answer. I have had that number for years and they do not have balance information.
Expert:  TaxRobin replied 10 months ago.

Then I will tell our Customer Support that you wish to withdraw your question.