Comments on: Ask the taxgirl: Lump Sum Repayment for Social Security

By: Joel Johnson

Joel Johnson — Sun, 11 Apr 2010 14:24:16 +0000

Kelly:
I asked about the repayment of Social Security. My tax man says, yes it becomes a deduction on the current years tax return. It worked especially well this year (2009) as I had transfered from my IRA four stocks, each to individual ROTH IRA’s in January of 2009. I knew if I kept them in the ROTH accounts the transfers would be treated as taxable income. The total was about $67,000. I’ve done this for several years. If the stock didn’t go up more than 25% by yearend I would recharacterize them to save the taxes. If more than 25%, the growth which is not taxable would pay for the taxes. Last year they all were up over 25%, in fact had grown to about $110,000 so I kept them all. The repayment of Social Security tax deduction more than offset the amount transfered to the ROTH accounts. It worked well last year. I have already transfered four more stocks this year to see what will happen. Worked for me well last year. JE Johnson Lincoln, Ne

By: Nancy

Nancy — Sun, 11 Apr 2010 04:23:39 +0000

I found a artical that they are going to try and barr the disability places from getting back the money they paid people. They do not think it is right if you pay for a policy you should be able to collect from it. But the only reason they did this with me is so they would not have to pay me my full benefits any more. I think that it they do not want to pay people for these policys they should buy a fruit cart and sell it on the side of the road. I do not think it is right for them to take a person SS that they have worked for all their lives. It is utter greed. I worked two full time jobs I should be able to get what I have earned. And other people should not have to be subject to this nonsence. But the courts are taking a second look at this now. And they are saying some thing is not right with this picture. Hello!? You think? Thanks for writing me. Nancy

By: Kelly

Kelly — Sat, 10 Apr 2010 12:07:51 +0000

Nancy, this is more of a contractual issue with Hartford than a tax matter. I’d take a copy of your contract to an attorney and have them take a peek.

By: Nancy

Nancy — Fri, 09 Apr 2010 21:10:56 +0000

after paying for a policy from Hartford and then they made me apply for SS. I was approved for the SS they sent me and my kids a retro payment. I was told by Hartford that I would need to send them all of the benefit for both me and my children. Is this possible that they can do this? What are my rights? Is it against the law for them to do this? What ever you can tell me would be a great help.

By: Kelly

Kelly — Mon, 27 Apr 2009 23:19:43 +0000

Honestly, I’ve never heard of this – but it sounds like a Social Security matter. I’d recommend contacting them (www.ssa.gov) or a Social Security lawyer.

By: J.E. Johnson

J.E. Johnson — Mon, 27 Apr 2009 00:11:10 +0000

I’ve been getting Social Security since I was 62 and am now 66 and 8 months. I have received about $78,000. I read an article that said I could repay all of my payments, reapply and get a payment based on my current age (about $2,100/mo). I currently get $1,554/month. If I repay, can I claim the payment as a deduction to recoup federal taxes I’ve paid and what will my new monthly payment be?