You can use Deluxe.
When figuring the taxable
portion of social security benefits, two options are available for lump-sum
benefit payments:
The first
option allows the taxpayer
to report the
whole payment in the year it was received.
When the taxpayer chooses this option, complete the Social Security Benefits
Worksheet as usual by including the entire lump-sum payment on line 1.
The second option is
to treat the
payment as received in the earlier year or years. This is done by figuring whether any part of these benefits is
taxable, based on the earlier year's income. Any part that is taxable is then
added to any taxable benefits for the current year and included on Form 1040,
line 20b. The taxpayer can elect this method if it lowers the taxable benefits.
If you choose the second
option, only the current year income will be adjusted. Do not file amended
returns for the earlier years.
After you enter your SSA-1099
information, TurboTax will ask if you received a lump-sum Social Security
payment. If you want to treat it all as taxable in 2018, 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.
You will need information from
your returns for the years that the lump sum covers.
