Paying Back Soc Sec

[WhiteOleander]

OK, have a client who began drawing SS at 62. His retirement age is 65. He says that he can pay back the amt. of SS he has already drawn and then SS Admn will re-figure his benefits at the 65 yo retirement age instead of 62.

Now, client's son in law says the amount he pays back is deductible. But, I don't see how. Perhaps if part of the benefits were taxable in any one year. That amount might be deductible under "claim of right"?

Anyone have any experience with this? Or any ideas?

Thanks

[WhiteOleander]

OK. More info.
This program is a buy back in program. If the client pays 20000 to SS, they can get SS to refigure their benefits as if they began drawing at age 65. I still don't think this is deductible. If they had waited, the FICA they had paid in between 62 and 65 would not have been deductible. So, I don't think this would be either.

Any opinions?

[Kram BergGold]

A guess

On page 3-21 of TTB it says if the repayment is less than the benefit in the year of the payback you deduct the amount paid back from the benefit. This would not be the case in your instance. So then I think the claim of right rules kick in as explained on the same page.

[Zee]

The repayment is deductible. Publication 915 explains the procedure.