Repayment of social security benefits

[JenMO]

It was discovered that client was not eligible for Social Security benefits from husband and had to pay back over $100,000. some years she paid on some of her social security. Is there a way to recoup some of that? Amend the past returns, but only three years?

[DonB]

See TTB page 3-4 for repayment of SSB treatment.

[ttbtaxes]

I don't think your client can amend those tax returns. She would be entitled a Section 1341 claim of right if the amount was under $3,000. Your case is grossly in excess of that. Did you client receive a Form 1099-SSA showing a negative number?

Also take a look at Mona L. Purcell T.C. Summary Opinion 2002-144.

[New York Enrolled Agent]

It was discovered that client was not eligible for Social Security benefits from husband and had to pay back over $100,000. some years she paid on some of her social security. Is there a way to recoup some of that? Amend the past returns, but only three years?

No amended returns are possible.

See publication 915 for a discussion of Social Security repayments. I think TTB made one typo - if over $3,000 a taxpayer can use §1341

[JenMO]

I've looked at TTB and pub 915. I figured with an itemized deduction, and of course wipes out all tax for 2013. Will this generate a NOL for future years, or a NOL carryback? Can I use this way?

[JenMO]

never mind, reading more carefully, I only take itemized deductions for the amount that was included in gross income - sorry.
therefore, no NOL
But, by putting on Line 71, can I get a refund since I've paid more taxes than what I owe for 2013

[JenMO]

also is there a place to deduct the interest Soc Sec charged by client?