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LawTalk, Attorney
Category: Social Security
Satisfied Customers: 37639
Experience:  I have 30 years of legal and litigation experience, including representing clients before the U.S. Social Security Administration.
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Received S/S disability payments in the past. It was

Customer Question

received S/S disability payments in the past. It was disputed and had to pay back the payments. How do I report this on my income tax return? Do I amend all returns with payments; or does the repayment become a deduction when paid?
Submitted: 1 year ago.
Category: Social Security
Expert:  LawTalk replied 1 year ago.

Good afternoon,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.

The law sets out, pursuant to section 1341 of the IRC, if an item of income (your overpayment) was included in your gross income for a prior taxable year because it appeared that you were rightfully entitled to the income, then a deduction will be allowed for the taxable year you repay the overpayment because it was only learned after the tax year you received the income that you in fact were not entitled to the income.

So, you repayment of benefits, to the extent that they were taxed as income when received in a prior tax year, are treated as a deduction in the year they are repaid.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you.

I wish you and yours the best in 2015,


Customer: replied 1 year ago.
Thank you. I thought that wasthe answer. Of course now as the repayment is being made there is no income to offset it against.
Expert:  LawTalk replied 1 year ago.

Thank you for your kind words. They are appreciated.

Please understand that in order for me to be compensated for having helped you, I need for you to positively rate my service to you by clicking on the rating stars---three stars or more. It is that easy.

Thanks in advance.

I wish you the best,