Lump Sum SS Wkst Line A and B. Taxpayer had SS in both 2024 and 2025. Spouse had no SS income in 2024 but got a 2024 $ in 2025 and a 2025 $ in 2025. How fill 4 boxes?

[sam14]

Same spouse both years.

[DavidD66]

According to the IRS:  

  

You must include the taxable part of a lump-sum payment of benefits received in the current year (reported to you on Form SSA-1099, Social Security Benefit Statement) in your current year's income, even if the payment includes benefits for an earlier year. 

However, there are two ways to determine the amount of income to include: 

• You can use your current year's income to figure the taxable part of the total benefits received in the current year; or 
• You may make an election to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. 

You can select the lump-sum election method if it lowers the taxable portion of your benefits: 

• Under this method, you calculate the taxable part of all your benefits (including the lump-sum payment) for the earlier year using that year’s income. 
• Then you subtract any taxable benefits for that year that you previously reported. 
• The remainder is the taxable part of the lump-sum payment. Add it to the taxable part of your benefits for the current year (figured without the lump-sum payment for the earlier year). 
• Worksheets in Publication 915, Social Security and Equivalent Railroad Retirement Benefits can help you calculate the taxable portion using this method. 

To report the "lump sum" method in TurboTax:   

  

• Search (upper right) for SSA1099   
• Click the Jump to ... link   
• Continue to enter your information and select Lump sum treatment  

Be sure to select "lump-sum" method of reporting in this situation.  You will have to calculate the taxable amount for each year separately, based on that year . 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. 

  

Be sure to enter zero if your Social Security benefits were not taxable or there were none for a particular year. If you are using TurboTax CD/Download, you can review the Lump-Sum Social Security Worksheet in Forms.  You can also review 'Earlier Year Lump-Sum Worksheet' for each year.  If you are using TurboTax Online, click the following link for instructions on how to review your return before filing.  How to Preview My Online Return Before Filing 

[sam14]

Please let me clarify with some sample numbers. SSA 1099 Box 5 and Box 3 data. There are two columns, Taxpayer and Spouse, with a Line A and a Line B for each.

Taxpayer SS Benefit for 2024 paid in 2024              20,000

Taxpayer SS Benefit for 2025 paid in 2025              25,000

Spouse SS Benefit for 2024 paid in 2024                           0

Spouse SS Benefit for 2024 paid in 2025                   8,000

Spouse SS Benefit for 2025 paid in 2025                   9,000

Total Spouse Benefit paid in 2025                             17,000

With this fact set, what would be the numbers entered for Taxpayer Line A and Taxpayer Line B, and for Spouse Line A and Spouse Line B for a 2025 MFJ return?  Thank  you

[AnnetteB6]

On the initial input screen for Social Security benefits, the total amount paid and received in 2025 will be entered for both the taxpayer and spouse (25,000 and 17,000).  

Then answer the question regarding being a US citizen living in certain foreign countries.  After that, there will be a question about receiving a lump sum payment.  You will answer 'yes' and indicate that the payment was for 2024 (this will be due to the amount paid to spouse in 2025 for 2024 - 8000).  Then there will be additional information to enter from your 2024 so that the taxable portion of the Social Security can be determined as described by DavidD66 above.  

TurboTax will do all the calculations, you don't need to fill in these worksheets manually.  That being said, after you enter the information, the Earlier Year Lump Sum Social Security Worksheet should show the following in the top section:

Line A Taxpayer - 0

Line A Spouse - 8000

Line B Taxpayer - 20,000

Line B Spouse - 0

@sam14