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?

[maggie22cherish]

SSA-1099 form for disability

[DanO · Accepted solution]

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