I thought I posted this question an hour ago. Whereever I sent it-it must be floating around in the air somewhere. Here it goes:
The repayment of Social Security-when earned income blows it out. When and where do you get the deduction.
Page 5-16 of an outdated tax reference.
1. If you pay it back in the same year you got the benefits you net it. I net by putting on Other income line as a negative.
2. If you repay it in a subsesquent year you:
$3,000 or Less: Miscellaneous itemized deduction subject to the 2%.
More than $3,000-Two options:
1. Claim an itemized deduction for the full amount(NOT subject to the 2% limitation), or
2. Claim a tax credit on the current year's return. Recompute tax on the earlier year
as if the income had not been reported. The difference between the recomputed and the actual tax can be claimed as a tax credit on the "OTHER PAYMENTS" line of
the current year(write IRC 1341 next to the line).
Any questions ask Bees. I do not think I knew of the credit.
I hope someone got my first question..???
The repayment of Social Security-when earned income blows it out. When and where do you get the deduction.
Page 5-16 of an outdated tax reference.
1. If you pay it back in the same year you got the benefits you net it. I net by putting on Other income line as a negative.
2. If you repay it in a subsesquent year you:
$3,000 or Less: Miscellaneous itemized deduction subject to the 2%.
More than $3,000-Two options:
1. Claim an itemized deduction for the full amount(NOT subject to the 2% limitation), or
2. Claim a tax credit on the current year's return. Recompute tax on the earlier year
as if the income had not been reported. The difference between the recomputed and the actual tax can be claimed as a tax credit on the "OTHER PAYMENTS" line of
the current year(write IRC 1341 next to the line).
Any questions ask Bees. I do not think I knew of the credit.
I hope someone got my first question..???
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