Thursday, January 24, 2008

Wrong 1099-SSA forms

http://www.ssa.gov/legislation/1099facts.pdf
Due to a programming error, about 2.7 million SSA-1099s contained incorrect amounts. SSA has corrected the error and is mailing revised SSA-1099s to affected beneficiaries. A fact sheet describing the problem is available at the link above.

The incorrect forms over-reported the amount of benefits received by some Social Security beneficiaries who purchase Medicare Advantage or prescription drug plans under Social Security parts C and D. The incorrect information is in Box 3, Benefits Paid, of the form.

In some cases, Social Security computers preparing the 1099s included premiums for plans paid in 2006 as part of benefits received in 2007.