Yes, you do need
to enter information about the lump sum payment, then TurboTax will determine
where or whether it should be reported. There
will be a follow-up question after you enter your Social Security income that
will ask if you received a lump sum payment where you will answer Yes and then follow the prompts.
For more information see the TurboTax article below.
https://ttlc.intuit.com/replies/4767454