Social Security withdrawal confusion - will IRS revise 1099 after payback?
I started taking my Social Security benefits early in October 2024 and now I'm going through that 'one-time withdrawal' process. I submitted all my Form 521 paperwork back in early December and got confirmation they received it. Problem is, they didn't process it fast enough and I just got another direct deposit for January 2025! I specifically wanted to avoid this tax nightmare where the repayment and benefits cross calendar years. When I called the 800 number (took 3 days to get through!), the representative told me that once I repay all the benefits, they'll issue a corrected tax form showing $0 in SS benefits paid to me. Is this actually true? Has anyone gone through this? I'm hitting my Full Retirement Age in February 2026, so I'll be back on this fun rollercoaster of paperwork soon enough. Any advice from someone who's actually completed this withdrawal process would be amazing.
25 comments
Join the conversation
Connor Richards
Yes, the agent is correct. After you complete the withdrawal and repay all benefits, the SSA will issue a corrected Form SSA-1099 showing $0 in benefits for the tax year. However, this won't happen automatically - you need to specifically request the corrected form after your repayment is processed. Keep detailed records of all your repayments and correspondence with SSA.
0 coins
Zoe Wang
•Thank you so much! Do you know how long it typically takes for them to process the repayment and issue the corrected form? I'm worried this will drag into tax filing season.
0 coins
Grace Durand
I went thru this last yr. SSA is right but it takes FOREVER to get the corrected 1099. I had to file an extension on my taxes bc the new form didnt come until May!! Just fyi
0 coins
Zoe Wang
•Oh no, that's exactly what I was afraid of! Did you have to keep calling them to follow up, or did they eventually send it without prompting?
0 coins
Grace Durand
•had to call them like 5 times!!! so annoying
0 coins
Steven Adams
I'm confused... why are you doing a withdrawal instead of just suspending your benefits until FRA? When you withdraw, you have to pay back EVERYTHING you received, but suspension lets you keep what you already got while still earning delayed retirement credits. Since you're only 13 months from FRA, suspension might make more financial sense unless you really need the higher monthly amount right away.
0 coins
Zoe Wang
•I honestly didn't know suspension was an option! My financial advisor recommended the withdrawal because I don't need the money right now, and he calculated I'd be better off waiting until my FRA for the higher monthly benefit. Is suspension something I can still choose instead?
0 coins
Connor Richards
•Suspension and withdrawal are very different strategies. Suspension is only available once you reach Full Retirement Age, so that's not an option for you yet. Withdrawal (what you're doing) must be done within 12 months of starting benefits and requires paying everything back, essentially giving you a clean slate. Sounds like your financial advisor has you on the right track for your situation.
0 coins
Alice Fleming
same thing happend to me!! i got a check after doing withdrawal and had to pay it back too. the corrected tax form DID come but not until april. kinda stressful tbh
0 coins
Zoe Wang
•April isn't terrible I guess, but cutting it close! Did the corrected form show $0 benefits like they promised?
0 coins
Hassan Khoury
You should document EVERYTHING. Take screenshots of your bank account showing the repayment, keep copies of all forms, get names of SSA reps you talk to. I went through this in 2023 and they lost track of my repayment TWICE. The tax form situation was eventually resolved, but it took me filing a formal complaint to get it done. The SSA systems for handling these withdrawals are surprisingly outdated.
0 coins
Zoe Wang
•That's terrifying! I've been keeping a folder with all the paperwork, but I'll definitely start recording names and dates of every conversation. Did you ever get a receipt or confirmation when you made the repayment?
0 coins
Hassan Khoury
•Yes, when you repay you should get a receipt. INSIST on it. I repaid at my local office and got a stamped receipt. If you mail a check, send it certified mail with return receipt and follow up to confirm it was applied to your record. Don't trust that it's automatically being processed correctly.
0 coins
Victoria Stark
After dealing with a similar situation trying to reach SSA, I discovered a service called Claimyr that helped me get through to a live person at Social Security without waiting on hold for hours. You can check them out at claimyr.com - they have a video showing how it works here: https://youtu.be/Z-BRbJw3puU I used it to follow up on my amended tax forms after a benefit adjustment, and it saved me so much frustration. Might be worth looking into if you need to call SSA multiple times about your corrected 1099.
0 coins
Alice Fleming
•does this really work?? i spent like 4 hours on hold last week!!
0 coins
Zoe Wang
•Thanks for the tip! I'll definitely check this out. The hold times are absolutely ridiculous lately.
0 coins
Benjamin Kim
BE CAREFUL about the one year deadline for withdrawal!!! I missed mine by 9 days and they REFUSED to let me withdraw. Check the EXACT date you first received benefits and make sure all your paperwork is done before that anniversary. The SSA is extremely strict about this timeline and will not make exceptions.
0 coins
Zoe Wang
•Thanks for the warning! My first payment was October 3rd, and I submitted the withdrawal request on December 5th, so I should be well within the timeframe. It's the processing delay on their end that's causing the problem with the January payment.
0 coins
Steven Adams
What happens with the January payment? Do you have to send in more paperwork to pay that back too, or does the original withdrawal request cover all payments including ones that come while it's processing?
0 coins
Connor Richards
•The withdrawal request covers ALL benefits received, even those that arrive while the request is being processed. However, you'll still need to return that January payment once SSA calculates your total repayment amount. They'll send you a letter with the exact figure to repay, which will include everything received up to that point.
0 coins
Heather Tyson
I went through this exact process in 2023 and can confirm what others have said - yes, SSA will issue a corrected 1099 showing $0 benefits, but the timing is brutal. Mine didn't arrive until late April, forcing me to file an extension. Here's what I learned: After you complete your repayment, call SSA and specifically request form SSA-4195 (Statement of Non-Receipt of Social Security Benefits). This form serves as temporary documentation while you wait for the corrected 1099. Some tax preparers will accept this to file your return early. Also, make sure to keep that January payment separate in your account - you'll need to include it in your total repayment. The processing delays are unfortunately normal, but the withdrawal will ultimately work as intended. Just budget extra time for everything!
0 coins
Chloe Green
•This is incredibly helpful information! I had no idea about form SSA-4195 - that could be a real lifesaver if my corrected 1099 doesn't arrive in time. I'll definitely ask for that when I call to follow up on my repayment. Did you have any trouble getting your tax preparer to accept the SSA-4195, or was it pretty straightforward once you had it?
0 coins
Savannah Vin
I'm currently going through a similar withdrawal process and this thread has been so helpful! I started benefits in September 2024 and submitted my Form 521 in November, but like you, I keep getting payments while they process everything. One thing I learned from calling multiple times - ask for a "case number" or "control number" when you speak with representatives. This helps track your withdrawal request through their system and makes follow-up calls much easier. The reps can pull up your case immediately instead of having to re-explain everything each time. Also, I've been keeping a detailed log of every payment I receive (including that unexpected January one you mentioned) with dates and amounts. My local SSA office told me this documentation will speed up the final repayment calculation when they're ready to close out the withdrawal. Good luck with the process - it sounds like we're both in for a fun tax season! At least we'll have those higher FRA benefits to look forward to next year.
0 coins
QuantumQuasar
•This is such great advice about getting a case number! I wish I had known that when I started this process. I've been having to re-explain my situation every single time I call, which is so frustrating. I'm definitely going to ask for that control number next time I speak with them. Your documentation strategy sounds smart too - I've been keeping records but not as systematically as I probably should. Did the local office give you any estimate on how long the final repayment calculation typically takes once they have all the payment details? It's oddly comforting to know someone else is going through this exact timeline! At least we can commiserate about the bureaucratic maze together. Fingers crossed both our withdrawals get sorted out before tax season gets too crazy.
0 coins
Myles Regis
I'm just starting to consider early retirement and had no idea about this withdrawal option! This whole thread is eye-opening. Can someone clarify - is the one-year withdrawal window from when you first apply for benefits or from when you receive your first payment? I'm trying to understand all my options before I make any decisions about when to start taking Social Security. Also, for those who've been through this process, would you still recommend doing the withdrawal despite all the paperwork headaches and tax form delays? It sounds incredibly stressful, but if the financial benefit is significant enough, maybe it's worth the hassle?
0 coins