Good afternoon,
My husband received social security disability after a 4-year struggle, and it includes past benefits back through 2021. I understand that I can claim the entire amount this year or list each year on the worksheet. I also understand I should not file amended returns for the past years, but my concern is if I list them separately, I may trigger an audit of my past taxes, or it will affect what I have to pay for those years as I am assuming the income will be taxed. Advice? The amount is around $125K, so it puts us in a higher bracket since I also have a good income.
Also, the lawyer's fees were paid directly from the amount. Do I still claim the amount in Box 3 before attorneys and then list the attorney fee as a deduction?
