The lump sum covered 18 months of benefits, so I did not receive a SSA-1099 in 2020 or 2021 since the money wasn't paid until 2022. TT wants info from these forms I didn't get for money that I didn't receive in those 2 tax years.
Here is an example of Form SSA-1099 that shows the amounts for earlier years. The payments for 2020 and 2021 will be shown in the box DESCRIPTION OF AMOUNT IN BOX 3. The payments are for those years even if you didn't receive the money in the exact years. The amounts for prior years need to be reported for those years,
After you enter your SSA-1099 information, we'll ask if you received a lump-sum Social Security payment. If you didn't receive one, answer No and move on.
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.
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 out what, if any, taxes you owe due to the lump-sum payment.
Please see this TurboTax Help article for additional information.
to calculate the tax you would have paid, enter the information requested by TurboTax for those years.
if that is less than the tax on it all in 2022 you will get the smaller tax.
to take your chances and take a lump sum in 2022 enter it all as a 2022 benefit and don't mention prior years to TurboTax.
Here is an example of Form SSA-1099 that shows the amounts for earlier years. The payments for 2020 and 2021 will be shown in the box DESCRIPTION OF AMOUNT IN BOX 3. The payments are for those years even if you didn't receive the money in the exact years. The amounts for prior years need to be reported for those years,
After you enter your SSA-1099 information, we'll ask if you received a lump-sum Social Security payment. If you didn't receive one, answer No and move on.
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.
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 out what, if any, taxes you owe due to the lump-sum payment.
Please see this TurboTax Help article for additional information.