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Level 1

I received a lump sum settlement from SSA that was included on the ssa-1099, but not shown as a lump sum payment.

I was collecting 50% spousal benefits from my wife's account in 2016.  When I retired in 2017 I received a lump sum of what the difference was would I have collected my own benefits instead of hers.  Received two SSA-1099's.  One for the portion of the year that I was collecting the spousal benefit and another for the 8 months that I collected my own benefit.  The lump sum was included in the 1099 for my own benefits.  Do I manually take away the lump sum benefit amount from Box 5 and enter that amount in the "Lump Sum" question?  Thus changing the box 5 figure.to what was actually collected in monthly payments..I'm so confused.

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Level 12

I received a lump sum settlement from SSA that was included on the ssa-1099, but not shown as a lump sum payment.

It depends.  For a lump-sum SS distribution, there are two ways of figuring out the taxability of the distribution.  The first method is to include the whole distribution as reportable this year.  If reporting it this year does not increase your tax liability, go ahead and use that method.  It's easier.  However, there is another way, which is to figure out how much tax you would have paid in each separate year that distributions would have been received, but no amended return for a prior year is needed. To enter the lump sum (amounts you will enter manually), follow the instructions in this FAQ:  https://ttlc.intuit.com/replies/4767454