You have two things going for you. The SSD covers multiple years so you can use the lump-sum election to help prevent you from being pushed into a higher bracket. In addition, you can claim credit for the taxes paid on the money over the past 3 years. This will take some re-calculating of those taxes to claim the difference between what you paid vs what you would have without the income. It is well worth the time and energy. Once you accomplish those tasks, the $5,000 will be properly accounted for on your taxes.
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