negative amount on social security statement

[oceanlovin'ea]

This is a new one to me!

Client brought in social security statement. He started to get his SS in 2009 but then company wanted him to keep working a while longer. So he stopped the SS and paid back all the money. This is how his statement reads:
Paid by check or direct deposit - 11,601.00
Medicare part B - 289.20
Total - 11,890.20
subtract -non-taxable payments - 385.60
Benefits for 2009 - 11504.60

Then benefits repaid to SSA in 2009 - 11,602.20
Net Benefits - (97.60)

It will not let me enter a negative figure on the social security screen. Should I enter this somewhere else like line 21.

Linda

[Gretel]

Somehow it doesn't make any sense that he paid back more than he received if all payments were made in 2009.

I am inclined to not report any negative SS on this tax return.

[mwarney]

It seems like the only way this could be accurate is if the TP received payments in 2008 and repaid them in 2009. If this all transpired within 2009, then it would seem like the correct amount to report should have been zero. I guess if it were me, I would report what actually occurred. Maybe it's some of that "fuzzy math" we've been hearing about.

[thomtax]

I may be way off base here, but it is not going to affect the amount of tax. I know that it is not technically correct, but why would you just not enter the zero in ss amount. It is not going to carryover or affect any calculations that I know of. I'm just looking at it from a practical standpoint and it is less than $100 to the negative side. I, too, would like to know why the difference, but that is another issue. I wonder if it could be some type of interest that they charged him for having the money.

LT

[oceanlovin'ea]

medicare

I wondered if it had something to do with the medicare payments.

Sounds like the majority agree to ignore the negative figure.

Thanks.

Linda

[mwarney]

I wondered if it had something to do with the medicare payments.

Sounds like the majority agree to ignore the negative figure.

Thanks.

Linda

I bet you are right... The medicare premium payment is out if sync by one month. The SS benefit amount is payment for the prior month while the medicare premium deduction is for the current month. I think they usually take two months of medicare premiums from the first check.