Retirement tax questions

Here is an example of Form SSA-1099 that shows the amounts for earlier years. The payments for 2020 and 2021 will be shown in the box DESCRIPTION OF AMOUNT IN BOX 3. The payments are for those years even if you didn't receive the money in the exact years. The amounts for prior years need to be reported for those years,

After you enter your SSA-1099 information, we'll ask if you received a lump-sum Social Security payment. If you didn't receive one, answer No and move on.

If you did, 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 out what, if any, taxes you owe due to the lump-sum payment.

Please see this TurboTax Help article for additional information.