This can be handled on your tax return for 2021. Do not amend your 2020 tax return but you will need the information from that return to complete the lump sum election. The Form SSA-1099 should show a total amount in box 5, and then the amount that is designated for each year in box 3. Worksheet 4 is included after Worksheet 2 is completed for each year.
- Search (upper right) for ssa1099 > Click the Jump to ... link > Continue to enter your information and select Lump sum treatment
Be sure to select "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits. Enter the appropriate amounts for each year when you start that section of your return. Continue to add each year for all years listed in box 3. There is no amendment required.
Also enter a zero if your Social Security benefits weren't taxable or there were none in the earlier year (such as for a spouse). If you are using the TurboTax CD/Download version review the Lump-Sum Social Security Worksheet in Forms. You can also review 'Earlier Year Lump-Sum Worksheet' for each year.
For TurboTax Online review this link: How to Preview My Online Return Before Filing
Please update if you have more questions.
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