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If you followed the steps for a Social Security lump sum payment then TurboTax did the calculations. The way you can check is to do it both ways.
Social Security Lump Sum: There is a "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.
The IRS has a special lump-sum distribution calculation that would allow you to be taxed as though the funds were actually received in the year to which they are attributable or as though it were all for 2016. The lowest tax result will be used.
Great news: TurboTax can walk you through that process and calculate the proper tax based on your entries.
Check out the screenshots I have attached to help you. You will need your previous year returns for some of the information.
You can go directly to the area to review your entry by following these steps.
1. Sign into your account and select your current return.
2. Select My Account on the top right and then select Tools
3. Select Topic Search (see attached image)
4. Search for ssa1099 and select Go
5. Follow the interview to enter or review your entry for these benefits.
If you followed the steps for a Social Security lump sum payment then TurboTax did the calculations. The way you can check is to do it both ways.
Social Security Lump Sum: There is a "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.
The IRS has a special lump-sum distribution calculation that would allow you to be taxed as though the funds were actually received in the year to which they are attributable or as though it were all for 2016. The lowest tax result will be used.
Great news: TurboTax can walk you through that process and calculate the proper tax based on your entries.
Check out the screenshots I have attached to help you. You will need your previous year returns for some of the information.
You can go directly to the area to review your entry by following these steps.
1. Sign into your account and select your current return.
2. Select My Account on the top right and then select Tools
3. Select Topic Search (see attached image)
4. Search for ssa1099 and select Go
5. Follow the interview to enter or review your entry for these benefits.
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