- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Tax treatment of Social Security lump sum payment
After many rounds of denials and appeals, my wife was awarded a lump sum Social Security disability amount of approx. $70000 which she expects to receive in June this year. One-third of this amount can be attributed to each of the 3 prior years of 2016, 2017 and 2018.
In addition, she started receiving regular Social Security disability payments in Jan. of this year. The total for 2019 will be $25,000.
For better tax planning purposes, I would like to estimate how much of this $70K would be taxable on our 2019 return and whether this lump sum amount affects the taxable portion of her Social Security payments received in 2019.
Is there a way to run this "what-if" scenario in TurboTax? If so, can someone show me how? I have any numbers that might be needed from our 3 prior year tax returns.
Finally, I would like to know if we need to amend our 2016, 2017 and 2018 returns.
Topics:
‎June 17, 2019
1:17 AM