I received a corrected SSA lump payment in 23 for 22 and a 2nd 1099. What values are added or entered on which screens? Please be specific

[rich.bolterstein]

do I add box 5s from both 1099s when reporting income?  The lump sum was entirely received in 2023.  When reporting the lump do I report anything in earlier year benefits?  This is all catch up for my wife who passed in 2022

[DavidD66]

Yes, if you have multiple Forms SSA-1099 you combined the amounts and make a single entry.  You do not report anything in prior years.  The benefits are reported in the year received, regardless of the year they pertain to.  

[rich.bolterstein]

Do I sum the 2 SSA-1099 doc values on the first page?

If I sum the values together from above, what do I report on the lump sum pages on TurboTax?

Thanks for the quick response,

Rich

[JamesG1]

You do sum the box 5 amounts and make one box 5 entry.

The Social Security lump sum payment process requires you to enter information from your previous years tax returns.  Then the tax that would have been due from one or more prior year tax returns is simply added to your 2023 tax return as an additional tax assessment.  

For instance, in 2023 you receive $20,000 in Social Security benefits, $5,000 for 2023 and $15,000 lump sum benefit for 2022.

You enter the information from your 2022 tax return.  The Social Security worksheets determine how much, if any, additional tax would have been owed.  This additional amount due is added to your 2023 tax return for payment.

If, in 2023, you had also received Social Security benefits assigned to 2020 and 2021, those years are computed in the same way and the additional tax that would have been owed is added to your 2023 tax return.

To report Social Security lump sum payments, follow these steps:

• Go to Federal / Wages & Income / Your income / Social Security.
• Click Start / Revisit to the right.
• At the screen Did you receive any lump-sum payments?, answer Yes.

See also this TurboTax Help.

@rich.bolterstein