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Level 1
June 6, 2019
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How will Social Security Disability backpay affect my taxes?

  • June 6, 2019
  • 1 reply
  • 20 views
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    Best answer by Hal_Al

    I may be taxable, but will not push you into a higher tax bracket. The IRS allows a special calculation that treats the money as received in the prior year(S) when it should have been paid.

    TurboTax can handle this calculation. In the social security income section, answer yes when asked if you received a lump sum payment

    1 reply

    Hal_Al
    Level 15
    Hal_AlLevel 15Answer
    Level 15
    June 6, 2019

    I may be taxable, but will not push you into a higher tax bracket. The IRS allows a special calculation that treats the money as received in the prior year(S) when it should have been paid.

    TurboTax can handle this calculation. In the social security income section, answer yes when asked if you received a lump sum payment