TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

user515448

Question

I received a lump sum payment for social security for prior years.. Where do I enter my taxes withheld for my lump sum payment.

Forum|Forum|6 years ago
June 3, 2019
6 replies
0 views

No text available

TurboTax Home & Biz Windows

Coleen3

Employee

Enter your SSA as usual. There will be a space for your withholding.

After you enter your 2018 SSA-1099 information, we'll ask if you received a lump-sum Social Security payment. Answer Yes and follow the onscreen instructions. (See the attached screenshot below. Click to enlarge.)

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. Start with 201x. (See the attached screenshot below. Click to enlarge.)

On the next screen, Enter your 201x lump-sum payments received in 2018 (See the attached screenshot below. Click to enlarge.) and Continue

On the next screen, Tell Us About Payments Received in 201x (probably leave blank) and Continue

On the Tell Us About Your 201x Income enter your 2015 income as required (See the attached screenshot below. Click to enlarge.) and Continue

When finished with 201x, click Add Another Lump Sum if you need to enter benefits received for a different tax year (201y)

Now simply do the same thing that you just did for 201x, but use the relevant numbers for the next year (e.g.201y).

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

bossross234

My question is completely different! It's just just where I enter my s/s #. It's being questioned!

mglauner

@bossross234 Your Social Security Number is entered in the Personal Info/My Info section.

When make entries for various types of Income/Expenses and indicate they belong to you, TurboTax uses the SSN you entered in the Personal Info/My Info section.

Click this link for info on How to I Change My Personal Information?

davemill69

On the Tell Us About Your 201x Income enter your 2015 income as required ...

Do I enter MY income, which I did not have any; or my husbands since he worked? !

DaveF1006

If you filed Married Filing jointly, you would enter ALL income reported on your 2015 return. This includes your husband's earned income.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

mjfmechanic

My question is, when turbo tax starts on the Social Security questions, it automatically asks you for the amount in box 5 (lump sum). My box 5 has the entire lump sum listed (with the two previous two years). So do I subtract the previous two years and then put the remaining in box 5 or do I continue and add the entire amount of box 5 then fill out the prior two years and the software will deduct my prior two years from the initial lump sum amount I put in initially?

AnnetteB6

You should enter the box 5 amount just as it was reported on your Social Security statement. TurboTax will take care of determining the taxable amount based on your answers to the lump sum questions you will answer next.

@mjfmechanic

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Verojay

Hello! So I got a 1099 for lump

sum-three years worth. I paid back most of it to my insurance company. I believe I found the place to enter that amount paid back-Claim of Right. However I have a few questions.
1.) when I’m entering the 1099 and lump

sums-it asks if I received benefits in 2019 that were already reported on your 2019 tax return, there will be an amount in box 5 of your Form SSA-1099.

-So I use the full amount for all the lump

sum and not break it up by year? I only received one 1099.
2.) My sons received 1099’s. My oldest turned 18, when I received them. I assume they don’t file because it was under $15,000 for each son (lump of all years) and also I don’t have to file on mine for them?

I’m assuming I just stick to my 1099 and insert exactly what I repaid my insurance company. They deducted lawyer fees on my 1099. I was already taxed on my past disability through my insurance company, so I’m hoping I won’t be taxed anymore. Thank you!

DaveF1006

It depends. Your social security statement for 2020 will list all the years you are receiving lump sum payments for. If 2019, is the only year that is recorded on your statement, that is the only year you need to report. If there are prior years listed on your 2020 statement, then there is an opportunity to list those after you complete recording your 2019 lump sum payment information. You will need your 2019 return to answer the questions regarding your 2019 lump sum payment. These are asked to determine if there is any taxable income after the lump sum amount is reported.

You do not need to report your sons social security benefits. Lawyer fees and amounts paid back are part of your claim of right payment.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Verojay

Hello: First off, thank you.

Yes, I split up the lump sum, by three years. But it asks the question. if I received benefits in 2019 that were already reported on your 2019 tax return, there will be an amount in box 5 of your Form SSA-1099. It asks the same question for each year.

I received one 1099 for the back payments-with one amount in box 5. It’s the total for all backpay years totaled. So, for each year-when it asks this question, do I enter the full/cumulative about?

I owed on all the back payment years previously, because I had to pay taxes on my company disability. So, I’m

assuming at that point I’ve paid the IRS on it.

Finally, the money I reimbursed my insurance company for. Did I input it in the right place? The Claim of Right Payment (over $3,000)? I input the full amount, which included what they paid for my dependents. It doesn’t include nor mention the $6,000 lawyer fees. So I assume, it’s not reported separately?

Again, I really appreciate your help.

Pawoodhouse

Turbo tax is not using publication 915

Worksheet 4....this should be used for lump-sum election method...please verify that worksheet 4 is available for my greatest tax refund currently 14 k 8n income too high

DianeW777

The lump-sum election has always worked correctly in TurboTax. Have all tax returns available for each year included in the lump sum payment.

This can be handled on your tax return for 2021. The Form SSA-1099 should show a total amount in box 5, and then the amount that is designated for each year in box 3. Worksheet 4 is included after Worksheet 2 is completed for each year.

Be sure to select "lump-sum" method of reporting in this situation which is all done on the tax return for the year of receipt of the benefits. Enter the appropriate amounts for each year when you start that section of your return. Continue to add each year for all years listed in box 3. There is no amendment required.

Also enter a zero if your Social Security benefits weren't taxable or there were none in the earlier year (such as for a spouse). If you are using the TurboTax CD/Download version review the Lump-Sum Social Security Worksheet in Forms. You can also review 'Earlier Year Lump-Sum Worksheet' for each year.

For TurboTax Online review this link: How to Preview My Online Return Before Filing

Please update if you have more questions. @Pawoodhouse

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

dmm55423

I understand entering the lump sums for each year separately. I don't understand "Enter a zero if your Social Security benefits weren't taxable". Is this where I need to enter the result from the Publication 915 worksheet 4 for each year I received SSA backpay?