Drake Tax - SSA-1099 or RRB-1099: Repayment of SS or RRB Benefits
Article #: 10302
Last Updated: October 18, 2024
Net benefits, in box 5 of SSA-1099 or RRB-1099, represent gross benefits (box 3) less repayments (box 4). As long as the amount in box 5 is positive, any repayment in box 4 is included in net benefits and need not be reported separately. Enter the net benefits from box 5 in the Net benefits field of screen SSA.
Note If the Taxpayer or Spouse is a Part Year Resident of two or more states, you will need to create additional SSA screens for each of these states, and divide the amounts accordingly, or suppress each additional SSA from federal calculation.
If the amount in box 5 is negative, total it with other net benefits you have received (and your spouse has received if filing a joint return).
"If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. If the figure is more than $3,000, you should figure your tax two ways."
First review "Repayment of Benefits" and "Repayments More Than Gross Benefits" in Publication 17 to calculate the possible deduction. If the amount is more than $3,000, follow the instructions in Publication 17 and enter the result in one of the following locations:
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screen A, line 16
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screen 5, Schedule 3, line 13z. Enter code 1341 in the Form field and then the amount in the adjustment line. The literal I.R.C 1341 will print on Form 1040, Schedule 3, line 13z.