My SSA-1099-SM form indicates that $474 paid in 2017 was for 2016....and then the system automatically includes that $474 in my total.....is there anything I should do?

[HelenaC]

No, but when you get a lump sum from a prior year, you only pay the taxes (if any) that you would have paid had you received the $474 in 2016. TurboTax will help you enter the amount from 2016 properly. You will need your 2016 income tax return.

• A lump-sum payment is simply a one-time Social Security payment that you received for prior-year benefits. When someone is granted disability benefits, for example, they will receive a lump sum to cover the entire time since they first applied for disability; this period could cover months or years.

• After you enter your SSA-1099 information, we'll ask if you received a lump-sum Social Security payment. If you didn't receive one, just answer No and move on.

• Otherwise, answer Yes and follow the onscreen instructions. Your SSA-1099 lump-sum section breaks down the payments into what amount was received for each preceding year. You can only enter one year at a time; when finished, click Add Another Lump Sum if you need to enter benefits received for a different tax year.

• While your lump sum may include benefit payments for more than one year, you do not have to file an amended tax return for any prior year. You might need to pay taxes on a small portion of your lump-sum payment. However, you might be able to avoid these taxes by apportioning prior year benefits to those previous years’ income (still without filing any amended returns).  

• After you enter your lump-sum Social Security payment information, TurboTax will automatically figure what if any taxes you owe due to the lump-sum payment.   

To enter your Form SSA-1099:

1. Open (continue) your return in TurboTax if it's not already open.
2. In TurboTax, search for the term "social security benefits" and then select the "Jump to" link at the top of your search results.
3. On the Social Security Benefits screen, answer Yes and select Continue.
4. Check the first box, then enter the amounts from your form(s) where indicated.
   • If you received multiple SSA-1099s, add up the amounts for each box.
   • Do not include SSA-1099s for dependents; those should be reported on the dependent's return, but only if they are required to file a return (this is uncommon). More info
5. Select Continue and follow the onscreen instructions.

Related Information:

• Do I need to report the $255 death benefit from Social Security?
• Where do I enter an SSA-1099, SSA-1099-SM, or SSA-1099-R-OP1?