Ssi lump sum payment

To enter your Social Security lump sum payment, please follow these steps:

1. While in your return, on the Wages & Income screen, scroll down to Retirement Plans and Social Security.
2. Click the Start/Revisit box next to Social Security (SSA-1099, RRB-1099.
3. On the Tell us about the benefits you received screen, mark the box for Social Security benefits (Form SSA-1099) and click Continue.
4. Enter the amounts from Form SSA-1099 on the next screen.
5. On the screen, Did you receive any lump-sum payments? Mark the Yes button and click Continue.
6. On the next screen, enter the first year the payment is for [2015].
7. Enter the amount of the lump sum designated for that year.
8. Continue through the screens, entering the requested information.
9. On the screen, Review your lump-sum payment info, click the box Add another lump-sum payment.
10. This time enter the year 2016.
11. Continue through the interview as you did for the first year.
12. Continue this process for the rest of the years covered by the lump sum distribution.

Regarding your legal fees:

If some of your lump sum turns out to be taxable, you use to be able to deduct the fee paid to your attorney, but only on a pro rata basis. [For example, if 40% of your lump sum payment was counted as taxable income, you may deduct 40% of your attorney's fee.]

Unfortunately, For tax years 2018 through 2025, taxpayers cannot claim any miscellaneous itemized deductions previously subject to the 2% AGI limitation.

While legal fees aren't deductible on your federal return, some states allow you to deduct them on your state return. To enter the legal fees, please follow these steps:

1. On the Deductions & Credits screen, scroll down to the Other Deductions and Credits section.
2. Click the Start/Revisit box next to Legal Fees.
3. Click the Enter my expenses box.
4. Enter the amount on the next screen.