Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jan 16, 2024 9:51:18 AM

Will I know that my lump sum elections were done correctly? It seems they ended up including it in this years income for all the back years?

0 2 310
1 Best answer
Expert Alumni
Jan 16, 2024 3:28:44 PM

If you are referring to a social security lump sum payment, the total payment will appear on your form 1040, line 6(a), and the taxable social security amount will appear on line 6(b). To know if the taxable amount is correct, you can review the Lump-Sum Social Security Worksheet,  that you can access once your pay for your TurboTax program. It will show how the taxable benefits under the lump-sum election is calculated. Then, you can view the Social Security Benefits Worksheet that will show how the normal taxable benefits on the current year distribution is calculated, on line 18. The taxable social security benefits, on line 20 of the worksheet, will be the smaller of the taxable benefits with the lump sum election versus the taxable benefits without the election. That amount will be your taxable benefits on line 6(b) of form 1040.

2 Replies
Expert Alumni
Jan 16, 2024 3:28:44 PM

If you are referring to a social security lump sum payment, the total payment will appear on your form 1040, line 6(a), and the taxable social security amount will appear on line 6(b). To know if the taxable amount is correct, you can review the Lump-Sum Social Security Worksheet,  that you can access once your pay for your TurboTax program. It will show how the taxable benefits under the lump-sum election is calculated. Then, you can view the Social Security Benefits Worksheet that will show how the normal taxable benefits on the current year distribution is calculated, on line 18. The taxable social security benefits, on line 20 of the worksheet, will be the smaller of the taxable benefits with the lump sum election versus the taxable benefits without the election. That amount will be your taxable benefits on line 6(b) of form 1040.

Level 15
Jan 17, 2024 5:14:35 AM

The lump sum election, all in this year, is useful when you don't have copies of the filed returns for those other named  years.

@TJ0000