You will be able to enter the lump sum Social Security distribution after entering any distributions for 2016. To enter Social Security
income please follow these steps:
- Click on Federal Taxes
> Wages & Income.
- In the Retirement Plans and
Social Security section, click on the Start/Revisit box next to
Social Security (SSA-1099, RRB-1099) [See Screenshot #1, below.]
-
On the next screen, Social Security Benefits, mark the Yes box and click Continue.
[Screenshot #2]
-
On the screen Tell Us About the
Benefits You Received, mark the box for Social
Security benefits (Form SSA-1099). [Screenshot #3]
- A set of boxes will appear for you to enter the Social
Security benefits for you and your wife. [Screenshot #4]
- Click Continue when done.
- The next screen will ask if you
received any lump-sum payments. Mark the appropriate button and
click Continue. [Screenshot #5]
Legal fees to collect taxable Social Security benefits are deductible. [For example, if only 50% of your benefits are taxable, you can deduct 50% of the legal fees.] To enter the expenses:
- Click on Federal Taxes >
Deductions & Credits.
- In the Other Deductions and Credits section,
click on the Start/Revisit box next to Legal Fees.
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