Are Social Security Repayments Tax Deductible?


Quick Answer

As of 2015, Social Security repayments are tax deductible up to a certain amount, according to the Internal Revenue Service. Social Security repayment claims depend on the quantity of a repayment and the repayment income year.

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Full Answer

Taxpayers can take an itemized deduction for the part of benefits they included in the gross income from a prior year, notes the Internal Revenue Service. If the deduction is less than $3,000, then the taxpayer gets a limit of 2 percent of his adjusted gross income. This limit applies to particular itemized deductions. For amounts larger than $3,000, taxpayers can use separate methods to determine if taking a deduction versus a credit provides a greater benefit for reducing tax liability.

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