I see when doing a tax return you can allocate amounts for each year so when he gets a 1099 for this years taxes it should have the amount for each year? The SSA-1099 you get in January will have the breakdown in the lower left corner.
So this means we do not have to amend prior year returns? Correct ... this all happens on the 2019 return ONLY.
Also he had to repay his government disability retirement 100% of the first year of SSDI pamyents and 60% of the second year of SSDI payments. So we got to keep a small amount of the lump sum from SSDI. Is there a way to incorportate this in our tax return? Depends ... if any of the disability was taxable on the prior year returns AND if any of it is taxable on the 2019 return AND the amount is greater than $3000 then you can do a "claim of right" to claim a credit for the additional tax incurred by reporting the repaid amount in income. See IRS Publication 525 for an explanation of that method. It is available at: http://www.irs.gov/publications/p525/ar02.html#d0e9279
Look under deductions and credits, then other deductible expenses, then less common expenses if the amount is under $3,000.
Turbotax on-line does not support the "claim of right" computation. Turbotax desktop, in the forms mode, permits the credit to be entered in the "smart worksheet" above line 72, but you still would need to compute it manually.
