Is the SSFA considered a lump sum?

Forum|Forum|5 months ago
March 1, 2026
1 reply
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Is the lump sum from the SSFA of 2025 taxable?

TurboTax Online

Best answer by JamesG1

Expert Reviewed

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.

JamesG1Answer

Level 15

Expert Reviewed

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.