topic Lump Sum Social Secutiy Payment in Retirement tax questions

Lump Sum Social Secutiy Payment

kidellenville — Sun, 22 Feb 2026 23:06:24 GMT

I received a WEP elimination lump sum payment in 2024 which is included in my 2025 Social Security Benefits Statement. My wife also receives social security but did not receive a lump sum payment.

When completing the section in TT for social security information I answered yes to the question about a lump sum payment and indicated it was for 2024.

I was then prompted to another screen which asked about specific information related to my 2024 tax return, including adjusted gross income, tax exempt interest (line2a) and social security benefits and taxable amount (lines 6a and 6b)

Since we file a joint tax return I filled in the blanks on the screen as they appeared on the 2024 joint tax return. I believe I did that correctly but just want to double check. We are filing a joint return in 2025.

Please advise if this was done correctly or am I missing anything.

Thank you.

Re: Lump Sum Social Secutiy Payment

JamesG1 — Sun, 22 Feb 2026 23:13:29 GMT

What you describe sounds like you reported the income correctly.

The Social Security lump sum payment process requires you to enter information from your previous years tax returns. Then the tax that would have been due from one or more prior year tax returns is simply added to your current year tax return as an additional tax assessment.

For instance, in 2025 you receive $20,000 in Social Security benefits, $5,000 for 2025 and $15,000 lump sum benefit for 2024.

You enter the information from your current year’s income tax return. The Social Security worksheets determine how much, if any, additional tax would have been owed. This additional amount due is added to your current year’s income tax return for payment.

To report Social Security lump sum payments, follow these steps:

Go to Federal / Wages & Income / Your income / Retirement Plan and Social Security / Social Security.
Click Start / Revisit to the right.
At the screen Did you receive any lump-sum payments?, answer Yes.

Re: Lump Sum Social Secutiy Payment

fanfare — Mon, 23 Feb 2026 02:13:09 GMT

You have the option to go back to your records, as described,

or put the entire amount on your current tax return.

You should do it both ways and file the more favorable method.

to take the second option, tell TurboTax you did not get a Lump Sum.

@kidellenville

Re: Lump Sum Social Secutiy Payment

amarrakchi — Fri, 06 Mar 2026 14:54:44 GMT

I believe there is an error in the calculation for 6b in 1040. The amount calculated by TurboTax is higher than the amount I calculate using the worksheets. Can someone please double-check?

Re: Lump Sum Social Secutiy Payment

DianeW777 — Mon, 16 Mar 2026 16:21:56 GMT

Follow the detailed steps here to be sure you entered the correct information in each section.

You can use the Social Security lump-sum action to reduce the amount of your taxable social security, even possibly to zero.

What is a Lump-Sum Social Security Payment?

The lump-sum election has always worked correctly in TurboTax. Have all tax returns available for each year included in the lump sum payment (shown on your SSA-1099).

This can be handled on your tax return for 2025. The Form SSA-1099 should show a total amount in box 5, and then the amount that is designated for each year in box 3. Worksheet 4 is included after Worksheet 2 is completed for each year.

Be sure to select "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits. Enter the appropriate amounts for each year when you start that section of your return. Continue to add each year for all years listed in box 3. There is no amendment required.

Open your TurboTax Return > Search (upper right) > type ssa1099 > Click the Jump to.... Link or Click on See more > the click on social security benefits in the FAQ
Select Yes you received benefits > Complete your SSA-1099 > Continue > Yes I received at least one lump sum payment for 2023 or earlier > Continue
Type a year from your SSA-1099 > Enter the amount received for that year > Continue
If you received a Form SSA-1099 for the earlier year enter the box 5 amount, if not enter zero or leave it blank > Continue
Enter the filing status for the earlier year > Continue > Select whether you lived with a spouse in the earlier year > Continue >
Enter the information from the earlier year return > Continue > Add another lump sum payment (another year from box 3) if applicable or Click Done
Continue to follow the screens until you are back at the Income Summary page

Also enter a zero if your Social Security benefits weren't taxable or there were none in the earlier year(s) (such as for a spouse). If you are using the TurboTax Desktop version review the Lump-Sum Social Security Worksheet in Forms. You can also review 'Earlier Year Lump-Sum Worksheet' for each year.

You have access to all forms when you choose to print your return in TurboTax Online/Mobile. However you are required to pay before printing, but do not have to file until you are ready.

Can I print a copy of my return in TurboTax Online before filing? Be sure to select 'Include government and TurboTax worksheets'

If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.

@amarrakchi