Form 1040 Line 6 Earlier Year Lump-Sum Social Security Worksheet error

[jamesrobinson]

TT indicates an error: Earlier Year Lump-Sum Social Security Ws (2024); Earlier year taxable social security benefits for taxpayer should not be more than 85% of the sum of Line B, earlier year total SSA and RRB benefits for the taxpayer and spouse.

My refigured taxable social security benefits is figured elsewhere as 85% of Line 1, not Line B (that would be Line B plus the lump-sum paid in 2025 for 2024 benefits). Is this not an programming error?

[DianeW777]

It depends on your entries. Check the steps below to be sure you are entering the correct information in each field. 

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 2024. 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.

1. 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
2. Select Yes you received benefits > Complete your SSA-1099 > Continue > Yes I received at least one lump sum payment for 2023 or earlier > Continue
3. Type a year from your SSA-1099 > Enter the amount received for that year > Continue
4. 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
5. Enter the filing status for the earlier year > Continue > Select whether you lived with a spouse in the earlier year > Continue >
6. Enter the information from the earlier year return > Continue > Add another lump sum payment (another year from box 3) if applicable or Click Done
7. 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.

[jamesrobinson]

Thank you for your detailed reply. 

My version of TurboTax works differently than you describe. Your Step 1 using the search function just opens up Intuit's idiotic Digital Assistant. 

When I correctly entered taxable social security benefits (Form 1040SR Line 6b) instead of entering social security benefits (Form 1040SR Line 6a), my problem was resolved.

[dpracine]

I'm having the same error show up. I'm ready to file, but Turbo Tax keeps directing me back to the caculation for taxable social security benefits based on receiving a lump sum benefit in prior years. The message is:"Earlier year taxable social security benefits for taxpayer should not be more than $12471, 85% of the sum on Line B, earlier year SSA or RRB benefits for the taxpayer and spouse." Line B is the adjustments/exclusions claimed.  However, the 85% should apply to social benefits, not adjustments/exclusions.  I've gone through the Earlier YearTax Return Smart Worksheet in TurboTax and everything checks out, but I keep getting the error.