The information from Other Tax Years must be taken from your previous years income tax returns.
The Social Security lump sum payment process requires you to enter information from your previous years tax returns. Then the tax that would have been due from one or more prior year tax returns is simply added to your current year tax return as an additional tax assessment.
For instance, in 2025 you receive $20,000 in Social Security benefits, $5,000 for 2025 and $15,000 lump sum benefit for 2024.
You enter the information from your current year’s income tax return. The Social Security worksheets determine how much, if any, additional tax would have been owed. This additional amount due is added to your current year’s income tax return for payment.
If, in 2025, you had also received Social Security benefits for 2023 and 2024, those years are computed in the same way and the additional tax that would have been owed is added to your 2025 tax return.
In TurboTax Desktop, to report Social Security lump sum payments, follow these steps:
- Go to Federal / Wages & Income / Your income / Retirement Plan and Social Security / Social Security.
- Click Start / Revisit to the right.
- At the screen Did you receive any lump-sum payments?, answer Yes.
See also this TurboTax Help.
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