My husband got a lump sum from Social Security disability in the past. What if I do not know the year and the exact amount?

[DianeW777]

It depends. It's important to know those figures. If necessary you can contact the Social Security Administration (SSA) for the exact numbers. 

If you never filed the lump-sum action allowed in the year it was firs received you will not be able to utilize the special income calculation allowed. If you did receive it in 2025 for earlier years, then you can use the information below to utilize the lump-sum method. You might also get your IRS transcripts using the link below.

• Get My IRS Transcript

You can use the Social Security  lump-sum action to reduce the amount of your taxable social security, even possibly to zero.

• What is a Lump-Sum Social Security Payment?

The lump-sum election has always worked correctly in TurboTax. Have all tax returns available for each year included in the lump sum payment (shown on your SSA-1099).

This can be handled on your tax return for 2025. The Form SSA-1099 should show a total amount in box 5, and then the amount that is designated for each year in box 3. Worksheet 4 is included after Worksheet 2 is completed for each year.

Be sure to select "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.   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 or Click on See more > the click on social security benefits in the FAQ
2. Select Yes you received benefits > Complete your SSA-1099 > Continue > Yes I received at least one lump sum payment for 2023 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 Desktop version review the Lump-Sum Social Security Worksheet in Forms.  You can also review 'Earlier Year Lump-Sum Worksheet' for each year.

[Agilgolden]

My husband and I received lump sum payments for the first time this year.  His is for 2024 and "Other Years" . Mine is for 2024, 2023, 2022, and "other Years.  I've managed the sums for the Years identified but have no clue as to how to manage "other Years" since I can't leave the year field blank and putting alpha characters in is not allowed.  Some guidance would be greatly appreciated! 

[DawnC]

If your SSA-1099 provides no more description than 'Paid in 2025 for Other Tax Years', you could increase the amounts for 2022-2024, or you could assign that portion of the payment to 2021.   @Agilgolden 

[Agilgolden]

Thanks. Now, why will the taxable amount of SS from previous years not be accepted? for one year it accepted mine only and my husband's comes up red.  For other years, my taxable amount comes up as red on the worksheet even though we filed jointly and so does  his .  Ideas? 

[JamesG1]

my husband's comes up red.  For other years, my taxable amount comes up as red

I think that you are saying that the Social Security income reported by you is a negative number.  Is that correct?  Please clarify.

@Agilgolden 

[Agilgolden]

No it isn't a negative number. I just input the number and on my desktop version it shows red.  

[Agilgolden]

I also tried to input the total taxable amount for that year under the joint filing column and that also shows in red. 

[AnnetteB6]

When filling out the information for each year's lump sum worksheet, be sure you are looking at the information reported on that year's actual tax return.  After you have those in hand, review your entries for each prior year worksheet.

Often, when lump sum payments are received for previous years, the recipient is being paid for prior year benefits for the first time.  The payments are just being made retroactively and no Social Security was actually paid during those prior years.  If that is the case for you, then there would not be a taxable amount of Social Security income shown on the prior year tax returns because none had been paid during that prior year.

The 'red' information you are seeing indicates that there is conflicting information being entered and the value could be incorrect based on other entries that have been made.

@Agilgolden