If you receive an overpayment of soc security benefits and are going to pay it back in the following calendar year, do you still have to pay tax on the money received in the calendar year you received it?
2007-01-21 04:13:02 · 3 answers · asked by Birch 1 in Business & Finance ➔ Taxes ➔ United States
If the total amount paid to you requires you to pay taxes on social security, then yes. Next year's statement will show the amount paid back, so will be subtracted next year from your net social security earnings.
2007-01-21 05:49:17 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Yes.
You will get an adjustment in the following year. The reason is that you received the income in 2006, but you paid it back in 2007. 2007 payments did not occur in TY 2006, so you don't deduct it then.
2007-01-21 06:31:35 · answer #2 · answered by WealthBuilder 4 · 0⤊ 0⤋
You have to pay the tax this year as income, but you can deduct it next year.
2007-01-21 04:17:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋