I was recently awarded backpay with SSA going back to 2016 (I had a really long pursuit of disability, with denials, appeals, and then finally a fully favorable in Feb 2024). At the end of 2024, I received 113k in a lump sum payment from SSA. I had 34k in SSI benefits and then 79k from SSDI. My monthly benefit is very low and every year of backpay is broken down by year, with no year exceeding 18k. I made little to no money during the years of 2016-2024, so these small amounts would not have reached the level of needing to pay taxes for any of the years. But now with this lump sum payment, how do I handle this for my taxes?
