Lump Sum SSDI after taxable SSA payments

[dvall]

My husband was collecting social security retirement benefits when he switched to disability. He received a lump sum payment for back benefits for two years. His 2022 SSA benefits were partially taxable in 2022. TurboTax is telling me the taxable social security benefits for 2022 need to be zero. I can't make it zero because we paid taxes on those benefits in 2022. How do I get past the Smartcheck thing wanting me to change it to 0?

[DianeW777]

It depends.  If you are using TurboTax Online please do the following first, then try to re-enter your lump-sum data. It may be that simple to move forward.

In this situation, first please try clearing the cookies and cache.   It handles many issues that seem nonsensical on a regular basis. 

• Close your TurboTax return first.

Watch to be sure you are selecting 'all time' as example.  Do not use selections like 'last hour' for those browsers that give  you options.

• How to clear your cache

Once this is complete open your return and enter your form.In this situation, first please try clearing the cookies and cache.   It handles many issues that seem nonsensical on a regular basis. 

• Close your TurboTax return first.

Watch to be sure you are selecting 'all time' as example.  Do not use selections like 'last hour' for those browsers that give  you options.

• How to clear your cache

Once this is complete open your return and enter your information.

Enter the appropriate amounts for each year when you start that section of your return.   Continue to add each year for all years listed in box 3. There is no amendment required.

1. Open your TurboTax Return > Search (upper right) > type ssa1099 > Click the Jump to.... Link
2. Select Yes you received benefits > Complete your SSA-1099 > Continue > Yes I received at least one lump sum payment for 2022 or earlier > Continue
3. Type a year from your SSA-1099 > Enter the amount received for that year > Continue
4. If you received a Form SSA-1099 for the earlier year enter the box 5 amount, if not enter zero or leave it blank > Continue
5. Enter the filing status for the earlier year > Continue > Select whether you lived with a spouse in the earlier year > Continue >
6. Enter the information from the earlier year return > Continue > Add another lump sum payment (another year from box 3) if applicable or Click Done
7. Continue to follow the screens until you are back at the Income Summary page

Also enter a zero if your Social Security benefits weren't taxable or there were none in the earlier year(s) (such as for a spouse). If you are using the TurboTax CD/Download version review the Lump-Sum Social Security Worksheet in Forms.  You can also review 'Earlier Year Lump-Sum Worksheet' for each year. 

• What is a Lump-sum Social Security Payment? - For information should you want to review.