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I have recieved a lump sum payment for back pay over three years. Is it taxable and can i spread it over the three years and how?

SSA-1099 form for disability
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DanO
New Member

I have recieved a lump sum payment for back pay over three years. Is it taxable and can i spread it over the three years and how?

The disability benefits may be taxable depending on your other income.

  • If you earn more than $25,000 but less than $34,000 and file as an individual or more than $32,000 but less than $44,000 and file jointly, then fifty percent of your disability income will be taxable.
  • If you earn more than $34,000 if filing as an individual or more than $44,000 if filing jointly, then you will need to pay taxes on eighty-five percent of your disability income.

The back pay can be spread over 3 years, and can be entered in the follow way.

  • Sign into TurboTax
  • Click on Take me to my return
  • Click on Federal in left column
  • Scroll down to Retirement Plans and Social Security and click Show more
  • Click Start for Social Security (SSA-1099,RBR-1099)
  • Social Security Benefits click Yes and Continue
  • Tell Us About the Benefits You Received click on box for Social Security benefits (Form SSA-1099)
  • Enter your SSA-1099 information as shown on form
  • Did You Receive Any Lump-Sum Payments? Click Yes and Continue
  • Enter information for 2016 and continue through interview
  • When you get back to Lump-Sum Social Security Payments Summary - Click on Add Another Lump Sum
  • Follow through interview



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1 Reply
DanO
New Member

I have recieved a lump sum payment for back pay over three years. Is it taxable and can i spread it over the three years and how?

The disability benefits may be taxable depending on your other income.

  • If you earn more than $25,000 but less than $34,000 and file as an individual or more than $32,000 but less than $44,000 and file jointly, then fifty percent of your disability income will be taxable.
  • If you earn more than $34,000 if filing as an individual or more than $44,000 if filing jointly, then you will need to pay taxes on eighty-five percent of your disability income.

The back pay can be spread over 3 years, and can be entered in the follow way.

  • Sign into TurboTax
  • Click on Take me to my return
  • Click on Federal in left column
  • Scroll down to Retirement Plans and Social Security and click Show more
  • Click Start for Social Security (SSA-1099,RBR-1099)
  • Social Security Benefits click Yes and Continue
  • Tell Us About the Benefits You Received click on box for Social Security benefits (Form SSA-1099)
  • Enter your SSA-1099 information as shown on form
  • Did You Receive Any Lump-Sum Payments? Click Yes and Continue
  • Enter information for 2016 and continue through interview
  • When you get back to Lump-Sum Social Security Payments Summary - Click on Add Another Lump Sum
  • Follow through interview



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