Help Decoding Social Security 1099 Form

[Robert Coats]

Mrs. Robert and I started drawing Social Security retirement benefits last fall. Today, we got our 2023 "SSA-1099" forms, and I don't understand Box 4, 'Benefits Repaid to SSA in 2023.'

The gross (Box 2) was a bit over $20k, and Box 3 says about $9k was 'repaid' for a net of about $11k. I reviewed the deposit history, and the total matches $11k.

So what is Box 2, 'gross', and where does this number come from?

What is Box 3, 'repaid' and how is it calculated?

Anything else I need to know?

Thanks in advance!

[Crowbob]

Did you earn any money in 2023?

[Robert Coats]

Originally Posted by Crowbob

Did you earn any money in 2023?

No earned income in 2023, but did some withdrawals from my 401k. Had Federal taxes withheld for all of them.

[schwarz633]

Benefits repaid = Medicare premiums ?? But $9K seems quite high for that, unless you're getting hit with IRMA. Are these numbers the aggregate for both of you, or just a single 1099?

[greglepore]

You were eligible in the fall, or you started receiving them?
You were likely "entitled" to 20k in 2023, but due to work or late application or something else, you only rec'd 11k, thus 9K was "repaid" - in reality, it was likely deducted from payments made or never paid.

[Robert Coats]

Originally Posted by schwarz633

Benefits repaid = Medicare premiums ?? But $9K seems quite high for that, unless you're getting hit with IRMA. Are these numbers the aggregate for both of you, or just a single 1099?

Just me. Mrs. Robert's statement was less, but is also showed some 'Benefits repaid' at about the same percentage as me. Her deposits from SSA during 2023 match the 'net' shown on the her statement.

I googled 'IRMA' but am even more confused. It seems related to Medicare? Neither of us are enrolled in Medicare, as we're both 63, and not eligible until a few months before we turn 65.

[schwarz633]

I guess it's actually IRMAA, but doesn't apply if you're not on Medicare. I think greglepore's answer is probably correct.

[jhynesrockmtn]

I would check with a CPA or and investment advisor. This is from the IRS website. I would have thought you earned over the max but you say you had no earned income.

Description of Amount in Box 4
This part of the form describes the items included in the amount shown in box 4. It lists the amount of benefit checks you returned to the SSA and any adjustments for other types of repayments. The amounts listed include all amounts repaid in 2022, no matter when the benefits were received. Only the repayments that apply to you will be shown. If you didn’t make any repayments, the word “none” will be shown.

Checks returned to the SSA. If any of your benefit checks were returned to the SSA, the total is shown here.
Deductions for work or other adjustments. If any amounts were withheld from your benefits because of work or to recover an overpayment of retirement, survivors, or disability benefits, the total will be shown here. This may also be shown as Deductions for work or other adjustments under Description of Amount in Box 3, earlier.
Other repayments. This is the amount you repaid to the SSA by direct remittance.
Benefits repaid to the SSA in 2022. The amount shown here is the sum of all your repayments. This total is the same as that shown in box 4.

[Robert Coats]

Originally Posted by greglepore

You were eligible in the fall, or you started receiving them?
You were likely "entitled" to 20k in 2023, but due to work or late application or something else, you only rec'd 11k, thus 9K was "repaid" - in reality, it was likely deducted from payments made or never paid.

I turned 63 last July, and requested retirement benefits from SSA in September. Been getting regular deposits every month since then. Mrs. Robert applied at the same time, and her deposits hit the same day as mine.

So if I was 'entitled' to the $20k, what/why is the repaid $9k?

I did not work in 2023, no W-2, no 1099s. Just withdrawals from my 401k.

[greglepore]

I don't know, but am guessing that they calculate the benefits on an annual basis from 1/1 and then prorate for the months actually paid. Its all academic anyway as any amount that is potentially taxable is the amount shown in box 5 (net).
You were eligible in July, and the math works-roughly 50% of the year you were eligible, and you received that amount.

[Robert Coats]

Originally Posted by greglepore

You were eligible in July, and the math works-roughly 50% of the year you were eligible, and you received that amount.

Got it! That make perfect sense. Thanks so much.