1040 line 5 Social Security earlier year lump sum worksheet

[clueful63]

I have earlier year lump sum Social Security payments. The Earlier Year Tax Return smart worksheet for 1040 line 5, line D of the worksheet asks me for my 2018 Form 1040 line 5a, but it won't accept the amount. (The error alert says that it should be no more than 85% of line B earlier year total SSA benefits.) I suspect that it wants the taxable benefits from 2018, not the total benefits. But the taxable benefits seem to be on line 5b of my 2018 1040, not on line 5a as requested. Is this, as I suspect, a TurboTax glitch, in which case should I use the figure from my 2018 1040 line 5b? If not, how do I proceed. The amount that was on line 5a is exactly my 2018 total benefits, and therefore can't be 85% of those benefits. Thanks for the hoped-for help.

[MarilynG1 · Accepted solution]

Yes, you are correct that the wording on the Lump Sum Prior Year Social Security Worksheet  for Line D is confusing. 

The entry should be the Taxable Amount of your Social Security Benefits on Line 5b on Form 1040 from 2018. 

Thank you for your Feedback! 

[Edited 3/5/2020 | 4:27 PM]

[clueful63]

Thanks so much!

[MarilynG1]

You are most welcome.  

[cindymcguire]

I received a lump sum payment in 2019.  My SSA-1099 broke it down by year as to the amount of payment relating to each year.  The lump sum amount for 2015 was $3384

In 2015 my AGI was $66,334.   My Social Security amount in Box 5 was 7703.  Taxable Social Security that year was $20,647.  The 2019 tax return will not accept the 20,647.  What am I missing?

[cindymcguire]

I still cannot e- file my tax forms.  I am caught in a loop.  TT wants me to put in a number from my 2015 1040, 5b that is different from the number I actually submitted and is accurate.  2015 was a different year from other years' income due to an inheritance.  How can I put in a number that is contradictory to what I reported on my 2015 form.  I am losing faith in TT really fast.  

[clueful63]

Where are you being asked for your 2015 1040 line 5b?

If you're positive that that's what you should be reporting this year, have you tried clicking in the field and going to the Edit menu and selecting Override? That should allow you to put in whatever number you think is correct. But be very sure that you're right about what should go there!

[clueful63]

If you're working in Easystep, you should have been asked whether any of the SS payment was for a lump sum from earlier years. Easiest now is to go to the Forms mode (from the View menu) and pull up your Social Security Benefits Worksheet. Add up all the amounts from Box 5 of any SSA-1099 forms and put them in line A of the worksheet. Then fill out lines B-E. Now just below that section is a link to the Lump-Sum smart worksheet for dealing with lump sums from earlier years. Click that QuickZoom link and put in 2015 at the top of the Earlier Year Lump-Sum worksheet that it links to, then fill out that worksheet. Then the correct amounts should flow into your 2019 return. Good luck!