Is the SSFA considered a lump sum?

[uneekunique]

Is the lump sum from the SSFA of 2025 taxable?

[JamesG1 · Accepted solution]

The lump-sum payments sent under the Social Security Fairness Act are generally taxed as Social Security benefits received during the tax year, and are included in the SSA-1099 statement.

Follow these directions to report a Social Security lump payment: 

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Scroll down to Retirement plans and Social Security, click the down arrow to the right.
• Click on Start/Revisit to the right of Social Security (SSA-1099).
• At the screen Tell us about the benefits you received, enter the information as it is printed on the form.
• At the screen Did you receive any lump-sum payments?, click Yes.
• Enter the year and dollar amount from the SSA-1099.
• You will have to answer questions about that same year's tax return.
• Repeat for each year listed on the SSA-1099.