Enter your SSA as usual. There will be a space for your withholding.
After you enter your 2018 SSA-1099 information, we'll ask if you received a lump-sum Social Security payment. Answer Yes and follow the onscreen instructions. (See the attached screenshot below. Click to enlarge.)
Your SSA-1099 lump-sum section breaks down the payments into what amount was received for each preceding year. You can only enter one year at a time. Start with 201x. (See the attached screenshot below. Click to enlarge.)
On the next screen, Enter your 201x lump-sum payments received in 2018 (See the attached screenshot below. Click to enlarge.) and Continue
On the next screen, Tell Us About Payments Received in 201x (probably leave blank) and Continue
On the Tell Us About Your 201x Income enter your 2015 income as required (See the attached screenshot below. Click to enlarge.) and Continue
When finished with 201x, click Add Another Lump Sum if you need to enter benefits received for a different tax year (201y)
Now simply do the same thing that you just did for 201x, but use the relevant numbers for the next year (e.g.201y).
While your lump sum may include benefit payments for more than one year, you do not have to file an amended tax return for any prior year. You might need to pay taxes on a small portion of your lump-sum payment. However, you might be able to avoid these taxes by apportioning prior year benefits to those previous years’ income (still without filing any amended returns).
After you enter your lump-sum Social Security payment information, TurboTax will automatically figure what if any taxes you owe due to the lump-sum payment.
On the Tell Us About Your 201x Income enter your 2015 income as required ...
Do I enter MY income, which I did not have any; or my husbands since he worked? !
If you filed Married Filing jointly, you would enter ALL income reported on your 2015 return. This includes your husband's earned income.
My question is, when turbo tax starts on the Social Security questions, it automatically asks you for the amount in box 5 (lump sum). My box 5 has the entire lump sum listed (with the two previous two years). So do I subtract the previous two years and then put the remaining in box 5 or do I continue and add the entire amount of box 5 then fill out the prior two years and the software will deduct my prior two years from the initial lump sum amount I put in initially?
You should enter the box 5 amount just as it was reported on your Social Security statement. TurboTax will take care of determining the taxable amount based on your answers to the lump sum questions you will answer next.
My question is completely different! It's just just where I enter my s/s #. It's being questioned!
@bossross234 Your Social Security Number is entered in the Personal Info/My Info section.
When make entries for various types of Income/Expenses and indicate they belong to you, TurboTax uses the SSN you entered in the Personal Info/My Info section.
Click this link for info on How to I Change My Personal Information?
Hello! So I got a 1099 for lump
sum-three years worth. I paid back most of it to my insurance company. I believe I found the place to enter that amount paid back-Claim of Right. However I have a few questions.
1.) when I’m entering the 1099 and lump
sums-it asks if I received benefits in 2019 that were already reported on your 2019 tax return, there will be an amount in box 5 of your Form SSA-1099.
-So I use the full amount for all the lump
sum and not break it up by year? I only received one 1099.
2.) My sons received 1099’s. My oldest turned 18, when I received them. I assume they don’t file because it was under $15,000 for each son (lump of all years) and also I don’t have to file on mine for them?
I’m assuming I just stick to my 1099 and insert exactly what I repaid my insurance company. They deducted lawyer fees on my 1099. I was already taxed on my past disability through my insurance company, so I’m hoping I won’t be taxed anymore. Thank you!
It depends. Your social security statement for 2020 will list all the years you are receiving lump sum payments for. If 2019, is the only year that is recorded on your statement, that is the only year you need to report. If there are prior years listed on your 2020 statement, then there is an opportunity to list those after you complete recording your 2019 lump sum payment information. You will need your 2019 return to answer the questions regarding your 2019 lump sum payment. These are asked to determine if there is any taxable income after the lump sum amount is reported.
You do not need to report your sons social security benefits. Lawyer fees and amounts paid back are part of your claim of right payment.
Hello: First off, thank you.
Yes, I split up the lump sum, by three years. But it asks the question. if I received benefits in 2019 that were already reported on your 2019 tax return, there will be an amount in box 5 of your Form SSA-1099. It asks the same question for each year.
I received one 1099 for the back payments-with one amount in box 5. It’s the total for all backpay years totaled. So, for each year-when it asks this question, do I enter the full/cumulative about?
I owed on all the back payment years previously, because I had to pay taxes on my company disability. So, I’m
assuming at that point I’ve paid the IRS on it.
Finally, the money I reimbursed my insurance company for. Did I input it in the right place? The Claim of Right Payment (over $3,000)? I input the full amount, which included what they paid for my dependents. It doesn’t include nor mention the $6,000 lawyer fees. So I assume, it’s not reported separately?
Again, I really appreciate your help.
The lump sum should have the years separated or have a statement attached stating each year and amount. Somewhere, you should have that information. Enter the portion for each year. Entering more would increase your taxes.
The claim of right payment can be entered two different ways. You should use the method most beneficial to you. You repaid more than $3,000 so you are able to use both methods on page 36. About Publication 525, Taxable and Nontaxable Income. You can follow the instructions in the TurboTax article for the simple deduction or the credit, whichever is best for you, click here.
It is easy to switch to desktop if that works out better for you.
Hello!
yes, it’s broken up by year. Maybe I’m being confusing. If so, I apologize!
Screen says: Amount of 2017 lump sum received in 2020. That’s where I put the 2017 amount. I have 2017, 2018, and 2019 split up at the bottom of my 1099 SA.
Then it says: If X received benefits in 2017 that were already reported on your 2017 tax return, there will be in amount in box 5 of your Form 1099 SA.
This is the one I’m taking about. On my 1099 form it shows the amount I was paid for me and the kids, for all years. do I use that number in box 5, for all years I’m imputing in for lump sums? On my past tax forms for those years, I input what my private disability insurance paid. And then I owed taxes on that. Does that make sense?
Thanks again!
The program is trying to figure out what money your received in 2020 is taxable. So, for example: 2017 lump sum of $3,000 received in 2020 is taxable unless you already reported it on your 2017 return.
Was it already reported? You state that you had private disability that was taxed. Did you have to pay that amount back? If so, then it was already taxed - because you reported that income in 2017 and then didn't keep that private disability money since you got this money.
See Back Payments | Internal Revenue Service and What is a lump-sum Social Security payment?
Turbo tax is not using publication 915
Worksheet 4....this should be used for lump-sum election method...please verify that worksheet 4 is available for my greatest tax refund currently 14 k 8n income too high
The lump-sum election has always worked correctly in TurboTax. Have all tax returns available for each year included in the lump sum payment.
This can be handled on your tax return for 2021. The Form SSA-1099 should show a total amount in box 5, and then the amount that is designated for each year in box 3. Worksheet 4 is included after Worksheet 2 is completed for each year.
Be sure to select "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits. Enter the appropriate amounts for each year when you start that section of your return. Continue to add each year for all years listed in box 3. There is no amendment required.
Also enter a zero if your Social Security benefits weren't taxable or there were none in the earlier year (such as for a spouse). If you are using the TurboTax CD/Download version review the Lump-Sum Social Security Worksheet in Forms. You can also review 'Earlier Year Lump-Sum Worksheet' for each year.
For TurboTax Online review this link: How to Preview My Online Return Before Filing
Please update if you have more questions. @Pawoodhouse
I understand entering the lump sums for each year separately. I don't understand "Enter a zero if your Social Security benefits weren't taxable". Is this where I need to enter the result from the Publication 915 worksheet 4 for each year I received SSA backpay?
Yes. combine the total of all years on Worksheet 4 for 'line 20. Enter the total of the amounts from Worksheet 2, line 21'.
That statement means that if you did NOT have any social security benefits in an earlier year, then the amount would be zero when asked for the taxable benefits in an earlier year.. In other words, if you had no social security benefits in an earlier year, there would be no amount of taxable benefits for the earlier year.
I received a SS lump sum payment in 2021 that included money I should have received in 2020. Does that amount go in the slot for taxable SS income from 2020, even though I didn't actually receive money that year?
Generally, you use your 2021 income to figure the taxable part of the total benefits received in 2021. However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year.
You can elect this method if it lowers your taxable benefits. Under the lump-sum election method, you refigure the taxable part of all your benefits for the earlier year (including the lump-sum payment) using that year's income. Then, you subtract any taxable benefits for that year that you previously reported. The remainder is the taxable part of the lump-sum payment. Add it to the taxable part of your benefits for 2021. 2021 Publication 915.
In TurboTax:
we will ask you to enter:
What year was the lump-sum payment for?
What year was the lump-sum payment for?
How much was your lump-sum payment for 2020?
I reported my 2019 SSDI lump sum with my 2020 taxes. Turbotax is asking me to enter that amount again? So my question is am I being taxed on the lump sum amount twice?
Thank you
If you did not receive a lump-sum SSDI payment in 2021, say NO to that question.
In a lump-sum distribution, you are only taxed on the amount for that year; you're just reporting for the other years essentially.
Here's more info on Lump Sum Social Security Payments.
@gg89
So, if I received lump sum benefits for years: 2021, 2020, 2019, 2018 and there is still a large amount in the remaining 'years prior', I do not need to state that on the tax form? Also, There is no more space provided in that section.
After you enter your SSA-1099 information, TurboTax will ask if you received a lump-sum Social Security payment.
If you did, answer Yes and follow the instructions. Your SSA-1099 lump-sum section breaks down the payments into what amount was received for each preceding year. You can only enter one year at a time. If you need to enter benefits received for a different tax year, select Add another lump-sum payment.
You should enter amounts for all of the years covered by the lump-sum payment received in 2022. You can continue entering lump-sum payments in TurboTax Online for amounts received in 2022 for years prior to 2018. The instructions for this section indicate that it can go back to 1984.
Please see this help article and IRS Publication 915 for more information and instructions regarding reporting lump-sum Social Security payments.
TurboTax completely failed me regarding my SS lump sum payment. I went ahead and submitted my taxes believing that TurboTax would do it right, however when looking at Notice 703 and then doing the math on Worksheets 1, 2 and 4 in Publication 915 (3x by the way, to make sure I was right) TurboTax completely disregarded the math. I now have to file an amended return and can't until 2/15/25. This is exactly why I always double or triple check everything. My return would have been MUCH HIGHER if TurboTax would have done the math correctly. I am very disappointed!