DavidD66
Employee Tax Expert

Get your taxes done using TurboTax

I assume that this is more than just the last month's benefit payment.  If that is correct and the payment represents a one-time payment of retroactive benefits covering multiple months or years, then yes, they are a lump-sum payment.  If the payment only covers a single or a few months benefits (as opposed to multiple years) then I would skip the lump-sum payment section and having to figure the tax as if it was received in a previous year(s).  If it says Benefits for 2025, you would have to put 2025 for the year.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"