topic SSDI Lump Sum in Get your taxes done using TurboTax

SSDI Lump Sum

kev-lesweid — Tue, 09 Feb 2021 20:07:29 GMT

Hi...In 2020 I received a "Lump Sum" of $5971 that I was owed for years of under payments. My 2020 SSA-1099 only lists the amounts for 2016 thru 2019 ($2220), then there's a line that has "$3559 paid in 2020 for other tax years". When I am entering the years and total in the Wages & Income>Lump Sum I really only have the actual amounts for the four years listed and a breakdown for the other $3559 which probably covers another six or seven years.

Do I have to itemize the years with totals? If so does anyone have any idea how I can get the data from Social Security for the many years not listed on my 2020 SSA-1099?

Thanks

Re: SSDI Lump Sum

RayW7 — Tue, 09 Feb 2021 20:43:56 GMT

Enter the information from the SSA-1099 exactly as presented on the form.

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, answer No and move on.

If you did, answer Yes and follow the 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. If you need to enter benefits received for a different tax year, select Add another lump-sum payment.

I assume you will have to contact the Social Security commission direct to receive details regarding specific dates and amounts.

A lump-sum payment is a one-time Social Security payment that you received for prior-year benefits. For example, when someone is granted disability benefits they'll receive a lump sum to cover the entire time since they first applied for disability. This period could cover months or years.

The similar-sounding $255 lump-sum death benefit payment from Social Security is different. This is not a lump sum for tax purposes.

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.

Re: SSDI Lump Sum

kev-lesweid — Wed, 10 Feb 2021 17:05:01 GMT

@RayW7 Thanks, yes I did find the letter that the lump sum payments date back to 2009. I don't have records or information of the per year breakdown that they paid me past 2016 so I have to attempt to figure out how to get that. I hate to call due to having ALS and my speech is terrible, but it looks like I might have to try to explain to them what I need.