If a person collects Social Security at age 62, works and earns more than $14160 after beginning to collect the benefits, does Social Security automatically deduct the payments ($1 for each $2 earned)? Does the 1099-SSA reflect this so that I just enter the information as I do for any other client?
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Yes. Based on W-2 info or income tax returns for self-employment, SSA will autocalculate the payback and notify the recipient. They used to have to send a check in but now it is deducted from the current benefit if there is one. That will appear on the SSA-1099 under "benefits repaid" in the year recovered. -
Thanks
That answers my question.Comment
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Ssa 1099
If memory serves the SSA 1099 has a box where repaid benefits are reported. I would imagine that SSA finds out what you made through normal reporting and that you repay benefits the year after you earned the extra money. Does anyone else know or believe that I am wrong?
LOL I didn't see the earlier two posts because they were not up when I began to write.Comment
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SS Knows
It seems to me that the repayment would be the same year since Social Security knows exactly how much you made because SS and medicare were withheld from wages and sent to them.Comment
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It's a moving target
That dog won't quite hunt because of something as simple as Sch C stuff.Originally posted by Gary View Post
As for the main question, I'm not sure exactly where the line exists between "recalculated" (= reduced) benefits versus "repaid" benefits.
I have seen very few SSA 1099 Forms showing "repaid" and most of those had to do with disputed/ineligible disability issues.
FEComment
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the first year has different calculation, because what you made before retirement is not counted as earned after receiving social security.Comment
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