DawnC
Expert Alumni

Deductions & credits

Unfortunately, no, not anymore.   Prior to the Tax Cuts and Jobs Act, the IRS allowed you to deduct attorney fees as long as the fees were related to a tax issue or to producing taxable income.  If you hire an attorney to figure your taxes or appeal to the IRS over back taxes owed, then the charge for the time spent on these matters is no longer deductible.

 

After you enter the SSA-1099, TurboTax will ask you if it is a lump sum payment.  If it was, answer Yes and follow the instructions.  Your SSA-1099 lump-sum section breaks down the payments into what amount was received for each preceding year.  You can only enter one year at a time.  If you need to enter benefits received for a different tax year, select Add another lump-sum payment.

 

While your lump sum may include benefit payments for more than one year, you do not have to file an amended tax return for any prior year. You might need to pay taxes on a small portion of your lump-sum payment. However, you might be able to avoid these taxes by apportioning prior year benefits to those previous years’ income (still without filing any amended returns).

 

After you enter your lump-sum Social Security payment information, TurboTax will automatically figure what, if any, taxes you owe due to the lump-sum payment.

 

Lump-sum SSA payment, how to enter

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