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Level 2
Jun 15, 2020 12:09 AM UTC
Question

Lump-Sum Social Security Summary Question

Received a lump sum in 2017 from SS for a one time payment. Amount was already included and taxed in 2017, Why am I being taxed again??

 

Inputted the info into Turbotax  for the year 2017.

 

But under the Lump-Sum Social Security Summary for 2017, it show the following.

Amount Received in 2017 - My total SS Benefit for the year

Amount Received in 2019 - My Lump Sum Payment in 2017

 

Is this an error???

 

2 replies

rjs
Level 15
Level 15
Jun 15, 2020 12:57 AM UTC

Please clarify your situation.


Are you working on your 2017 tax return or your 2019 tax return?


If you are working on your 2019 tax return, do you have a Form SSA-1099 for 2019?


On your SSA-1099 for 2019, at the bottom on the left side does it show a payment in 2019 FOR 2017?


On your 2019 tax return you only report payments that you received IN 2019. TurboTax asked whether you received a lump-sum Social Security payment IN 2019 FOR a prior year. You do not report a payment that you received IN 2017 on your 2019 tax return.


If you did not receive any Social Security benefits in 2019, and you do not have an SSA-1099 for 2019, you do not enter ANY Social Security income in your 2019 tax return. If you did receive Social Security benefits in 2019, but on your SSA-1099 for 2019 there is no payment for a prior year at the bottom left, you do not report a lump-sum payment on your 2019 tax return. In this case, all the benefits that you received in 2019 were FOR 2019.

 

Level 2
Jun 15, 2020 7:44 PM UTC

Question asked was too general in the software package. It should state "did you received a prior year lump sum payment for the year 2019". 

 

Thank you!