Question

Social Security

Forum|Forum|5 years ago
February 22, 2021
1 reply
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My wife received $22,623 (box 5) from ss in 2020. This includes a lump sum of $11,532 received in May for Sept. 2019 through April 2020. Do I have to claim this as a lump sum since it is included in the $22,623?

H

HelenC12

Yes, you do. While your lump sum may include benefit payments for more than one year, you do not have to file an amended tax return for any prior year. You might need to pay taxes on a small portion of your lump-sum payment.

However, you might be able to avoid these taxes by apportioning prior year benefits to those previous years’ income (still without filing any amended returns).

After you enter your SSA-1099 information, we'll ask if you received a lump-sum Social Security payment. If you didn't receive one, answer No and move on.

If you did, answer Yes and follow the instructions. Your SSA-1099 lump-sum section breaks down the payments into what amount was received for each preceding year. You can only enter one year at a time. If you need to enter benefits received for a different tax year, select Add another lump-sum payment.

After you enter your lump-sum Social Security payment information, TurboTax will automatically figure what, if any, taxes you owe due to the lump-sum payment.