2024 Lump Sum and 2025 benefit increase

Forum|Forum|1 year ago
April 3, 2025
1 reply
0 views

I have a question related to earlier lump sum post.

I received a S.S. lump sum for 2024 and a notice of increased monthly benefits for 2025. Combined, it puts my 2025 estimated AGI about $2500 over IRMAA's 2025 Tier I limit. Wasn't expecting that huge benefit increase.
Would be great if I could apply that lump sum to my 2024 return. I had a lower AGI in 2023 and 2024. I would still have to pay the taxable amount in 2025, but assume my benefits for 2025 would then be reduced? Hense lower MAGI ?
Could I somehow do that?

I tried the suggested worksheets in Pub 915. Confusing. I can try that again.
Note: My taxable S.S. has been 85% all 3 years.

Not A Product Question

KeshaH

If you received the 2024 benefits in 2025, you can use the lump sum election when you file your 2025 return to calculate the taxable portion of your 2024 benefits using your 2024 income. However, the taxable portion would still be included on your 2025 return and in your 2025 adjusted gross income. You wouldn't be able to include it in you 2024 income.