Get your taxes done using TurboTax

First, by filing your 1040, you will need to handle the social security disability and the included back pay on your tax return.  

If the long term insurance was NOT taxable income on your returns in the past, then there is nothing to recover as a 'repayment' of previously taxed income.    If it was taxable you can use the link below to choose the best method based on your situation.

• What is a claim of right repayment?

You can use the Social Security Disability (SSDI) lump-sum action to reduce the amount of your taxable social security, even possibly to zero.

• What is a Lump-Sum Social Security Payment?

Have all tax returns available for each year included in the lump sum payment (shown on your SSA-1099).

This can be handled on your tax return for 2024. The Form SSA-1099 should show a total amount in box 5, and then the amount that is designated for each year in box 3. Worksheet 4 is included after Worksheet 2 is completed for each year.

Be sure to select "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits.  Enter the appropriate amounts for each year when you start that section of your return. ‌Continue to add each year for all years listed in box 3. There is no amendment required.

1. Open your TurboTax return 
   • Search in the upper right ssa1099 > Click the Jump to.. link
   • Follow the screen prompts to select Yes for lump sum payments

Also enter a zero if your Social Security benefits weren't taxable or there were none in the earlier year(s) (such as for a spouse). 

If you are using the TurboTax Desktop version review the Lump-Sum Social Security Worksheet in Forms.  You can also review 'Earlier Year Lump-Sum Worksheet' for each year.  for TurboTax Online/Mobile use  Tax Tools:

• To find Tools: 
  • Sign into your TurboTax account and open or continue your return. 
  • Select Tax Tools in the left menu. 
  • You'll find Tools beneath Tax Tools.
  • Select View Tax Summary
  • Select Preview My 1040 (left panel)

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