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Taxes are too complicated and convoluted for 5th grade words. But, TT does all the work for you.
After entering the SSA-1099, the interview will ask if there is a prior year lump sum payment.
The lump sum payment is taxable in the year received (2016); but the tax is calculated as if the payment had been received in the prior year. So, the interview will have questions about your 2015 return. Have a copy handy before you start.
Taxes are too complicated and convoluted for 5th grade words. But, TT does all the work for you.
After entering the SSA-1099, the interview will ask if there is a prior year lump sum payment.
The lump sum payment is taxable in the year received (2016); but the tax is calculated as if the payment had been received in the prior year. So, the interview will have questions about your 2015 return. Have a copy handy before you start.
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