Social Security backpay from 2024 - which tax year will it count toward?

Social Security benefits count as income for the year you RECEIVE them, not when they're for. So if your Nov and Dec payments arrive in January 2025, they count as 2025 income for tax purposes. This is different from how many other types of income work. Make sure to tell the rep you want benefits to START in November, not that you want to file retroactively (which means something different in SS-speak and only applies if you're past FRA).

Thanks! That makes sense. Do you know if they typically pay out pretty quickly after approval? Or is there usually a delay of a couple months? I'm wondering if I should expect the November payment in November or if it'll be delayed until January.

Going thru same thing!!!!! I applied in October and my benefits supposedly started November but I STILL dont have any payments!!!! Called SSA 8 TIMES and they keep saying its

They told me 30-60 days is normal processing time now, 90 days during busy periods. It's ridiculous but that's the government for ya

The key thing to understand is that Social Security benefits are reported for tax purposes in the year you receive them. This is based on when the payment is actually made available to you, not when it was scheduled or earned.If your application is approved quickly and payments for November and December 2024 are issued to you in 2024, they'll be reported on a 1099-SSA for tax year 2024.However, if processing delays push those payments into January 2025, they'll be included in your 2025 tax reporting instead.One thing to note: your first payment is typically made the month AFTER your benefit month. So November benefits normally arrive in December, and December benefits in January. This means your December 2024 benefit would likely count for 2025 taxes anyway.

This is super helpful, thank you! So even in a perfect scenario, my December benefit would likely count toward 2025 taxes. And if there are any delays in processing, both months could roll to 2025. Exactly what I needed to know for planning.

dude i wouldn't stress about it, the SS office is gonna do whatever they do and you'll get your money when you get it. i stressed about this stuff too but it all worked out.

When I started my retirement benefits last year, it took almost 6 weeks for my application to be fully processed and another 2 weeks before I received my first payment. Based on my experience, if you're applying tomorrow, there's a good chance your November and December payments won't arrive until January 2025, which means they'd count for 2025 taxes.FYI - I had a terrible time trying to reach someone by phone when I needed to check on my application status. After spending hours on hold and getting disconnected multiple times, I found a service called Claimyr (claimyr.com) that helped me get through to an agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. Saved me a lot of frustration during an already stressful process.

Thanks for the timing info - that helps set my expectations. And I appreciate the tip about Claimyr. My appointment is scheduled, but I'm sure I'll need to follow up on status at some point. I'll check out that video.

I think your confusing retroactive benefits with back payments. Retroactive is when they pay you for months BEFORE you applied, which they only do if your past full retirement age. Back payments are when they pay you for months between when you applied and when they approve you. Different things with SS!

You're right that they're different concepts, but the OP is actually using the term correctly. They're asking about requesting a start date (November 1st) that's earlier than their application approval date (tomorrow), which would create back payments for November and December.

Just make sure you understand how the earnings test works if you had income this year! Since you worked until September, you might be over the annual limit which was $21,240 for 2024 if you're under FRA.

Good point - I actually checked this already. I earned about $59,000 through September, so I know they'll withhold some benefits. But I was told that since I'm not working anymore, once I notify them about my work stoppage, I should start receiving full payments even if I was over the annual limit. Hoping the rep confirms that tomorrow.

That's correct. SSA applies a monthly earnings test in the first year of retirement. Once you have a complete non-working month, you're eligible for full benefits for that month regardless of how much you earned earlier in the year. Make sure you clearly tell the representative that you've completely stopped working as of September.

My sister got her first payment like 3 weeks after her application but my neighbor waited 4 months!!!! Its so random!!!

One more thing to know about your first payment - they pay benefits in the month following the month they're due. So November benefits are paid in December, December benefits in January, etc. Something to factor into your planning.

Just wanted to add - since you're planning to request benefits starting November 1st and you mentioned your financial advisor brought up retroactive payments and taxes, make sure you're clear on the terminology during your call tomorrow. What you're actually requesting is a "protective filing date" or benefits with a start date prior to your application date, which will result in back payments for November and December. True "retroactive" benefits in SSA terms only apply if you're past full retirement age. The rep should understand what you mean, but using the right terminology can help avoid confusion and make sure you get exactly what you're asking for.