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January 16, 2024
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Will I know that my lump sum elections were done correctly? It seems they ended up including it in this years income for all the back years?

  • January 16, 2024
  • 1 reply
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Best answer by ThomasM125

If you are referring to a social security lump sum payment, the total payment will appear on your form 1040, line 6(a), and the taxable social security amount will appear on line 6(b). To know if the taxable amount is correct, you can review the Lump-Sum Social Security Worksheet,  that you can access once your pay for your TurboTax program. It will show how the taxable benefits under the lump-sum election is calculated. Then, you can view the Social Security Benefits Worksheet that will show how the normal taxable benefits on the current year distribution is calculated, on line 18. The taxable social security benefits, on line 20 of the worksheet, will be the smaller of the taxable benefits with the lump sum election versus the taxable benefits without the election. That amount will be your taxable benefits on line 6(b) of form 1040.

1 reply

January 16, 2024

If you are referring to a social security lump sum payment, the total payment will appear on your form 1040, line 6(a), and the taxable social security amount will appear on line 6(b). To know if the taxable amount is correct, you can review the Lump-Sum Social Security Worksheet,  that you can access once your pay for your TurboTax program. It will show how the taxable benefits under the lump-sum election is calculated. Then, you can view the Social Security Benefits Worksheet that will show how the normal taxable benefits on the current year distribution is calculated, on line 18. The taxable social security benefits, on line 20 of the worksheet, will be the smaller of the taxable benefits with the lump sum election versus the taxable benefits without the election. That amount will be your taxable benefits on line 6(b) of form 1040.

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Employee
January 17, 2024

The lump sum election, all in this year, is useful when you don't have copies of the filed returns for those other named  years.

@TJ0000