Lump-sum Social Security payment for prior year

[jlm989tree]

Hello,

This is the first year that I'm filing single. My wife past away in 2023 and I filed Married filing jointly in 2023.

I'm entering the information from my first ever SSA-1099. I entered the amount from Box 5 Net Benefits for 2024. I do not live abroad.

I received a lump-sum payment of $2495 in January of 2024 for 2023 along with my first Social Security payment after applying for Survivor Benefits. Box 3 says "*Includes: $2495 Paid in 2024 for 2023".

I applied for Survivor Benefits in late 2023 and they were approved in December 2023.

I entered the amount of my 2023 lump-sum payment received in 2024, $2495.

The next prompt after clicking continue is...

Now, let’s look at your 2023 form

If you received benefits in 2023 that were already reported on your 2023 tax return, there will be an amount in box 5 of your Form SSA-1099.

Amount in box 5 of your 2023 Form SSA-1099 ??????? I didn't receive benefits or an SSA-1099 in 2023, my late wife did. I left this blank.

I clicked continue...

What was your filing status in 2023?

Married Filing Jointly

Click Continue.

We need a few details about your 2023 income

This info can be found on your 2023 tax return.

The 2023 Adjusted gross income is there.

Taxable Social Security benefits in 2023, I entered $7545 and the Federal Return amount increased about $40.

Is this the correct way to answer this series of questions? If I'm not entitled to the increased amount I don't want to get penalized for it when someone reviews the return down the road.

Thank you for your assistance.

[DaveF1006 · Accepted solution]

I followed the series of steps you outlined and it sounds like you did everything correctly.  The questions that were triggered were the right questions to ask because the program will determine either taxable income or a refund. 

With the small increase of a refund, the likelihood of an examination is slim or none. It appears that this was done correctly based on your steps listed above.

[jlm989tree]

Hi Dave,

Thank you so much. The approval of the benefits in late December but not actually receiving the 2023 benefit payment until January 2024 combined with dealing with information from the previous joint return and now working on a filing single was really confusing.

Thank you again.