The formula used for my retirement benefit was wrong The recalculation, created a lump some one time payment in 2025. How is it listed?

[kmarwitz]

Public Service Retirement with Private Pension. My SS Benefit was reduced by some amount because of my pension. Settled this year resulting in a corrective deposit.

[xmasbaby0]

Are you referring to the Fairness Act which passed last year and gave you a retroactive amount for Social Security for both 2024 and going forward---2025?     

[KrisD15]

If you have a lump sum listed on your SSA-1099 because of back pay, enter the SSA-1099 onto your 2025 return. 

You will claim and pay the tax on the additional income, but you do have two options concerning the additional back pay. 

You can claim and pay the additional back pay as if it was just part of your yearly benefit. If there is no tax on your Social Security, you would take this option.

If the additional back pay puts you into a higher tax bracket, you might use the second option which is to pay the tax that "would have" applied had you gotten the pay in the proper year. 

Either way, it is done on your 2025 tax return, YOU DO NOT AMEND YOUR TAXES.

To use the second option, the program will help you determine the amount of tax you would have been charged for the year(s) the payments apply to, and add that tax to your 2025 return. 

HERE is an IRS link with more information

HERE is a TurboTax link with more information.  

@kmarwitz