Notice code 132

Notice code 132 (Default) — We didn’t allow the negative entry of Social Security benefits reported on page 1 of your tax return…

What this IRS notice code means, and what to check before you reply.

What to do next

Start with these steps before you reply.

132

Read the notice carefully and note any deadline. Gather returns, notices, and payment records. Book a free strategy session before responding if the amount is large, unclear, or collection language appears.

What the IRS language says

We didn’t allow the negative entry of Social Security benefits reported on page 1 of your tax return. You can only reduce your Social Security benefits by the amount received and repaid in the same year. Note: If you have other itemized deductions in addition to Social Security benefit repayments, you may file Form 1040X, Amended U.S. Individual Income Tax Return, and include them on Schedule A, Itemized Deductions, to reduce your tax. Repayments of Social Security benefits that you included as income in an earlier year can be claimed as an itemized deduction on line 23 of Schedule A, Itemized Deductions. Publication 915, Social Security and Equivalent Railroad Retirement Benefits, provides additional information related to computing your taxable Social Security Benefits. You may call 1-800-TAX-FORM (1-800-829-3676) to order Publication 915, or download it from our web site at www.irs.gov .