SSDI 1099 Lump Sum Backpay

[emSuarez58]

Q1.  I received my SSA 1099 for my lump sum backpay  (2018, 2019, 2020).  However, I had not completed my tax return for 2020 at the time.  Does that make a difference in the calculation of the SSDI lump sum backpay?  *Note:  I applied for SSDI in 2019 and was approved by a judge in 2021. Back pay started May 29, 2018 thru 

Q2.  The amount shown on the SSDI 1099; box 3- paid by check or direct deposit - is NOT the amount I received. Why is the amount I received $69,144.00 LESS than what I received?  And, why do the numbers in the description at bottom of box 3 not add up to the total amount I received?  I've tried talking to an SSA Rep. but they did not understand why the calculations don't add up?  I can't file my 2021 tax return because of incorrect numbers calculated.   What do I do? 

[rjs · Accepted solution]

What year is your SSA-1099 for? The year is in large numbers in the upper left corner.

Your post is a little unclear. I am assuming that you started receiving benefits in 2021, that the SSA-1099 is for 2021, and that the amounts at the bottom of the description box are for 2018, 2019, and 2020. If these assumptions are not correct, ignore the rest of this reply and post more details.

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@emSuarez58 wrote:

why do the numbers in the description at bottom of box 3 not add up to the total amount I received?

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In 2021 you were paid benefits for 2021, plus lump sums for the three earlier years, 2018, 2019, and 2020. The total benefits in box 3 include the amounts for all four years, 2018 through 2021. So it is the sum of the amounts at the bottom of the description box, plus your 2021 benefits.

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@emSuarez58 wrote:

I had not completed my tax return for 2020 at the time.  Does that make a difference in the calculation of the SSDI lump sum backpay? 

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Your 2021 SSA-1099 has no effect on your tax return for 2020. In order to do the lump-sum calculation for your 2021 tax return you will need a few figures from your 2020 tax return. To get the necessary figures you will have to finish preparing your 2020 tax return, even if you have not actually filed it. You should file your 2020 return as soon as possible so that the IRS will be able to verify the lump sum calculation on your 2021 return.

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@emSuarez58 wrote:

Why is the amount I received $69,144.00 LESS than what I received?

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I don't understand what you are saying here. The amount you received is the amount you received. Please be more specific about exactly what two amounts differ by $69,144, and where those amounts come from.

[emSuarez58 · Accepted solution]

I apologize for my communication not being clear or specific. FYI -  In 2018, my 27 year old son suddenly died, he was my first born and only son. I have been thru hell and trying to find my way back.  My SSDI was denied twice then my atty. helped my approval via judge review.  

I am completely lost.  Below are the numbers I am referencing.

Description of Amount in Box 3:  

• Paid by check or Direct dep. $122,677.20

(I did not receive this amount.)

• Medicare Part B premiums deducted from your benefits.    $1,180.20

• Attorney Fees   $12,000.00 (Atty. got $6000)

• Total Additions.         $135,857.40

• Benefits for 2021.      $135,857.40

• Checks returned to SSA     $53,533.20 (returned to SSA due to deposit into a closed bank acct.  Reissued and deposited to correct bank acct. This is the amount I received via direct deposit.)

* Includes:

$49,726.40 Paid in 2021 for 2020

$48,758.00 Paid in 2021 for 2019

$3,794.00 Paid in 2021 for 2018

I don't understand These amounts,.

[NCperson · Accepted solution]

@emSuarez58 _i'll let others answer the specfic questions, but

the paid by check amt of $122.6k is the $135k benefit for 2021 less the attorney fees less the medicare premium.

did you receive monthly payments and then the lump sum of $53k? how much did you receive monthly?

[emSuarez58 · Accepted solution]

In May, 2021, I received $53,533.20 as a lump sum via Direct Deposit to my bank.  This was for back benefits from 11/2018 thru Feb/2021 per SSA Approval letter.  I was approved for SSDI monthly payments eff. March 2021 .

[rjs · Accepted solution]

I can't explain the discrepancies. Ask your attorney if he or she can explain it. Show the attorney the SSA-1099, the approval letter about the $53,533.20 payment, and any other correspondence you have from SSA that mentions specific amounts. Or maybe the attorney can contact someone in the SSA who knows more about it than the rep you get on the phone.

I'm sorry I can't be of more help.

[NCperson · Accepted solution]

@rjs @emSuarez58 - I wonder if there isn't another payment that also 'bounced back'. 

[emSuarez58]

Thank you so much for your reply. I appreciate your feedback, it's helped.  The tax year for my SSA 1099 is 2021.  

[emSuarez58]

My monthly payments started in 5/2021 ($1950.00/month).  Yes, I received the $53K in a lump sum in June 2021.

[emSuarez58]

That's a really good question?  The only record I have shows the deposit of $53k.  It's confusing because the 1099 shows a deposit of $122K but I did not get $122K.  I received $53K. 

Thank you so much for providing me feedback.  It's the most info. I've received and been very helpful!  

[emSuarez58]

Again THANK YOU VERY VERY MUCH!!

[emSuarez58]

Thank you.  I will gather everything and get in touch with my attorney. Bi almost feel like going straight to the judge who approved me.  But, I'm not  sure if that's a wise decision.   I appreciate your feedback.  Thank you!!