Go to
Federal Taxes->
Wages & Income->
Retirement Plans and Social Security and click on "Social Security (SSA-1099, RRB-1099)"
Enter your form SSA-1099 as it is printed.
For your husband's SSA-1099, you will need to do a lump sum exercise (actually, TurboTax will walk you through it).
In the SSA-1099 interview, please do the following (assume lump sum benefit for 2014):
- Indicate that you received lump sum payments
- Enter the year that the lump sum is for (from your 2016 SSA-1099)
- Enter the amount printed on your 2016 SSA-1099 for year 2014.
- Report the actual SSA payments received in 2014 (from your 2014 return, but often zero).
- Enter your filing status in 2014
- Enter your AGI, tax-exempt interest, and taxable SS benefits - all from your 2014 tax return
- Finish the interview
Note that at the end of the interview, there will be a link to "+Add Another Lump Sum" under the table. Click it and do the interview for 2015..
Click "Done" when you have completed the two lump sum lump sum years.
TurboTax will compute both methods of taxing the lump sum benefits and pick the best one for you automatically.
Attorney's fees
The attorney's fees are deductible, to the extent that the SS benefits in question are taxable. That is, if it turns out that after the lump sum calculations, that 50% of the SS benefits that you received are taxable, then you can deduct 50% of the attorney's fees.
Note that you do this on Schedule A under Miscellaneous Deductions subject to the 2% floor. Go to Federal Taxes->Deductions & Credits->Other Deductions & Credits and look for Legal Fees.
1099-R
Go to Federal Taxes->Wages & Income->Retirement Plans and Social Security and click on "IRA, 401(k), Pension Plan Withdrawals (1099-R)", and enter the data just as you see it on the form.
If you have additional questions on some of the questions being asked for the 1099-R, please post a separate question for it and it will be answered.
