I received a lump sum disability payment in 2016 for prior years on for SSA1099. At the bottom of the form it says there was X amount for 2012, X amount for 2013 and X amount for 2014 but I didn't receive anything until 2016. I'm in a much higher tax bracket now than I was back when I had the temporary disability in 2012, 2013 and 2014. Do I have to claim that all as income in 2016 or can it go against the prior years income?
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You have to report all of this income on your 2016 tax return. However, there is a way to deal with the prior year payments so that you dont have to amend any prior year returns. Please refer to the following FAQ for additional information and clarification. https://ttlc.intuit.com/replies/4767454
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