SSA-1099 Tax Levy

[gfpstaxes]

A SSA-1099 includes an amount for “Treasury Benefit Payment Offset, Garnishment and/or Tax Levy” Do I need to include this in the tax return? If so, where?
 

I think it may be due to taxes he owed from previous years.

Thank you for your help... Ky

[Just-Lisa-Now-]

Doesn't get entered anywhere on the return.

[gfpstaxes]

Thanks... does everyone concur?

[Just-Lisa-Now- · Accepted solution]

Its the same as if they paid the bill themselves, so unless what that money was taken for would be a deduction had they paid it themselves, its not entered anywhere.

[qbteachmt]

"does everyone concur?"

Box 3? Box 6?

Box 6 is Fed withholding.

For that notation: "If we show an amount in this legend, either the Treasury Department applied that amount to a debt or debts owed to other Federal agencies; benefits were withheld to pay child support, alimony, or court ordered victim restitution; and/or benefits were withheld to pay debts to the IRS."

You would have to know why they were garnished, to know if it is reportable at all.

[BobKamman]

The gross amount of benefits paid, in the salmon-colored box in the upper right corner, is the amount you report as Social Security benefits.  The amount garnished (usually 15%) is irrelevant.  For example, if $20,000 was paid and $3,000 taken by the IRS levy, you would report the $20,000.  

[gfpstaxes]

It's in Box 3. I did about 6 years of taxes for him last year and he owed for the first 3 or 4 years, so I wouldn't be surprised that he hadn't paid his full debt yet. He probably got letters from the IRS, but he doesn't correspond well enough that he would have sent them to me unsolicited.

[qbteachmt]

You seem to think this was Federal tax levy, which might be something to put on the State return, but not any penalty or interest amounts.