Government pension offset revisit

[marksr]

Greetings,
My wife receives a pension from the State of Ohio (OSERS). She started getting the pension in July 2020. Her Social Security should have been cut starting in July 2020 but due to circumstances beyond our control nothing was adjusted until August 2021. We reimbursed SS $8382.00 in August 2021 for over payment from July 2020 until August 2021.
We just received our 2021 SSA-1099 and Her’s reads Box 3. $7087.50
Box 4 $8382.00 Box 5 ($1294.50). I have read how to adjust our joint 2021 SS income by deducting the ($1294.50) from my SS net benefit. It doesn’t seem that will fix this problem.
Do I need to redo our 2020 taxes due to the fact that part of that $8382 repaid to SS is for Tax year 2020? Iam not sure of the exact amounts that should have been paid each of those months in 2020.

Thanks for any guidance
Mark

[Kaye Thomas]

Can you explain why you believe deducting your wife’s negative figure from your positive figure won’t fix the problem?

[marksr]

I wondered if we need to show our 2020 income  was reduced, Since part of the money we returned to SS was for tax year 2020 reducing our total income in 2020

Thanks Mark

[Kaye Thomas]

The answer is no. These adjustments are made for the year of the repayment, even if part or all of the repayment relates to a previous year. In your case, the full amount of the repayment is applied against 2021 income even though part of the repayment relates to amounts received in 2020.

[Author]

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