Get your taxes done using TurboTax

You have two situations taking place on your return. Review the information below to handle each one.

1. Social Security Lump Sum 
2. Private Insurance repayment (taxable in a prior year)

Social Security Lump Sum Payment:

• What is a Lump-Sum Social Security Payment?

The lump-sum election has always worked smoothly in TurboTax. 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 (upper right) > type ssa1099 > Click the Jump to.... Link
2. Select Yes you received benefits > Complete your SSA-1099 > Continue > Yes I received at least one lump sum payment for 2023 or earlier > Continue
3. Type a year from your SSA-1099 > Enter the amount received for that year > Continue
4. If you received a Form SSA-1099 for the earlier year enter the box 5 amount, if not enter zero or leave it blank > Continue
5. Enter the filing status for the earlier year > Continue > Select whether you lived with a spouse in the earlier year > Continue >
6. Enter the information from the earlier year return > Continue > Add another lump sum payment (another year from box 3) if applicable or Click Done
7. Continue to follow the screens until you are done with this section

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).

The California income will adjust as you are filing the return since the repayment will be removed on the federal return and social security income is not taxed in California.