Lump Sum Social Security Workshet

[user17731554757]

The Lump Sum Social Security Worksheet asks me to enter taxable Social Security Benefits entered in earlier year (2024) from Line 20b on Form 1040. There is no Line 20b on Form 1040. Also it tells me that the amount should not be more than 85% of Line B. But Line B is the total SS benefits I received in 2024. If it makes a difference, the lump sum payment I received was because of the ending of the SS penalty for people receiving certain state pensions.

[ThomasM125]

The taxable social security benefits would be on line 6(b) of Form 1040. The amount would not be more than 85% of your total social security benefits in 2024, as that is the most that could have been taxable.

[Grunge]

the program is applying the 85%

 limit to the taxable amount in 2024.  it should be applying it to the total amount.  the program is applying the limit incorrectly and applying it to the 6b amount which allready has the 85%

 applied

[ThomasM125]

The 85% limit you refer to may be being applied to the increase in your social security income reflected in the lump sum payment. In other words, if your lump sum payment is $10,000, only $8,500 of it could be taxable.

@Grunge