Did you receive a Form SSA-1099 with these payments included in the amount of benefits paid shown in box 5 of the form? If so, then you have to enter the SSA-1099 on your tax return. After you enter the amount from the SSA-1099 you will be asked if you received any lump sum payments. Answer Yes and then follow the interview to report the lump sum amounts by year.
To enter Social Security benefits reported on form SSA-1099
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On Social Security (SSA-1099, RRB-1099), click the start or update button
Or enter ssa-1099 in the Search box located in the upper right of the program screen. Click on Jump to ssa-1099
