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.
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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.
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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.
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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
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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?
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Grace Durand
•had to call them like 5 times!!! so annoying
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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.
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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?
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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.
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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
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Zoe Wang
•April isn't terrible I guess, but cutting it close! Did the corrected form show $0 benefits like they promised?
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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.
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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?
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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.
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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.
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Alice Fleming
•does this really work?? i spent like 4 hours on hold last week!!
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Zoe Wang
•Thanks for the tip! I'll definitely check this out. The hold times are absolutely ridiculous lately.
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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.
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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.
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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?
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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.
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