rjs
Level 15
Level 15

Retirement tax questions

If the Form SSA-1099 designates part of the payment as being for prior years, your parent might be able to reduce the tax by using the lump-sum election. TurboTax will ask whether they received a lump-sum payment. If you answer Yes it will walk you through trying out the lump-sum election to see if it saves any money. You would need copies of the parent's tax returns for the prior years.