Social Security 1099 issued for benefit payment I returned after husband's death - how to correct?

I'm so sorry for your loss. You're absolutely right that you shouldn't have to pay taxes on money that was returned to Social Security. What's happening is that the SSA's benefit payment system and their tax reporting system don't always communicate well with each other. You need to request a corrected 1099-SSA from your local Social Security office. Bring proof that you returned the payment (hopefully you kept a copy of the cancelled check or receipt). They should issue a corrected form that removes that amount from your taxable benefits.

this happened to my mom when my dad died!!!! the tax ppl said she had to report it exactly like the 1099 showed then file some form to get the money back. cant remember what form but it was a HUGE headache

This is actually a common issue that happens with survivor benefits and death of a beneficiary. The technical term for what you need is a "Corrected Form SSA-1099." The Social Security Administration needs to issue this because the original form is reporting benefits that were paid but doesn't account for the repayment. Two ways to handle this: 1. Contact SSA directly to request a corrected 1099 (preferred method) 2. If they can't get you a corrected form in time for tax filing, you can report the full amount as shown on the incorrect 1099, then deduct the repayment as a "Repayment of benefits received in an earlier year" on Schedule A if you itemize deductions Be warned that SSA offices are extremely backed up right now with these kinds of administrative corrections.

I went through EXACTLY THIS last year when my wife passed. I returned her last check but the idiots at SSA still sent a 1099 showing we received it! I tried calling their 800 number for THREE WEEKS straight and could never get through to a real person. Just hours of waiting on hold and then disconnected. It was INFURIATING!!! Finally had to take a day off work to sit at the SS office for 4 hours. Eventually got it fixed but what a complete waste of time. The whole system is BROKEN!

I had the same issue when dealing with my mother's estate last year. I tried calling SSA repeatedly but couldn't get through. After wasting hours on hold, I found a service called Claimyr (claimyr.com) that got me connected to a real SSA agent in about 20 minutes instead of waiting for hours. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Once I actually spoke with someone, they were able to start the process for a corrected 1099. Still took about 3 weeks to get the new form, but at least I didn't have to take time off work to visit an office in person.

my dad worked for irs for 30 years and he says just report everything like the 1099 says then write "REPAID" next to the amount on your 1040 form. he says the irs knows about this problem with social security and they have internal procedures for handling it

To answer your question from earlier - I would recommend calling first before going to the office. Even with the long wait times on the phone, it's usually faster than visiting in person. Ask specifically for a "corrected SSA-1099 due to returned benefits" when you finally reach someone. Pro tip: Call early in the morning right when they open (usually 7am local time). Wait times are typically shorter then.

Just to clarify an important technical point - if you returned the payment in the SAME tax year it was received, it should not appear on your 1099-SSA at all. If you returned it in a DIFFERENT tax year than when it was received, then there are different procedures (involving Schedule A). Since you received and returned the payment in 2024, and the 1099 is reporting 2024 benefits, you definitely need a corrected form. This isn't something you can just adjust on your tax return without proper documentation.

One more thing to watch out for - make SURE to keep copies of EVERYTHING. I had to send the same documentation to SSA THREE separate times because they kept "losing" it. Take photos of all paperwork before you send it, get certified mail receipts, and write down the names of everyone you talk to with dates and times. The bureaucracy is a nightmare when dealing with death benefits and corrections!!!

wait i just remembered something. my brother also had to deal with this with his wifes check. he said if u cant get a fixed 1099 in time for taxes theres a line on form 1040 somewhere to put "repaid social security benefits" or something. maybe someone who knows more can explain better. but there IS a way to fix it on tax forms if SS is being slow about sending new 1099

Thank you all so much for the helpful advice! I'm going to try calling the SSA tomorrow morning as soon as they open to request a corrected 1099-SSA. I've gathered all my documentation - the original deposit receipt, bank statement showing the repayment check cleared, and the letter I received from SSA acknowledging the repayment. If I can't get through by phone, I'll try making an appointment at my local office. And I'll definitely check out that Claimyr service if I keep having trouble reaching someone. I really appreciate everyone sharing their experiences. It helps to know I'm not alone in dealing with this confusing situation.