To enter a lump-sum payment listed on your 1099-SSA, please go to:
- Federal Section
- Income (Select My Forms)
- 1099-R, RRB-1099, RRB-1099-R, SSA-1099 - Distributions from pensions, annuities, retirement, IRA's social security etc.
- Social Security Benefits
- Lump-Sum Payments (Begin Worksheet)
Each field and the information within are listed below. All information is required to correctly calculate the taxable income on your return.
Year the lump sum payment was made for
This will be the year in which part of your payment was for.
For example: You received $20,000 for the years 2020 and 2021. In this section, you will enter the information solely for the prior 2020 tax year. If your lump sum was for multiple years, enter each year separately starting with the most recent (2020, then 2019).
Filing Status in Earlier Year
This will be the filing status you used for the year listed in the above field.
SSA Payments received in Earlier Year
If you DID receive payments for Social Security in the year you are referring to, enter this amount here. Generally, taxpayers do not receive Social Security for the previous year when receiving a lump-sum distribution for that year.
Portion of this year’s SSA for Earlier Year
This will be the amount that the Social Security Administration elected for you to receive in this year, but instead gave to you in a lump-sum in the current year.
Using the example before: Out of the $20,000 earned for both 2020 and 2021, $8,000 of that was for 2020. Enter that amount within this field.
Modified Adjusted Gross Income for Earlier Year
This will be the Adjusted Gross Income present on your tax return for the year referenced plus any modifications. These modifications consist of IRA contributions, student loan interest expense, foreign earned income exclusion, foreign housing, U.S. tax exempt bonds and interest, employer-paid adoption expense and domestic production activities deduction. Your AGI can be found on the following lines:
Tax Year 2020 - line 11
Tax Year 2019 - line 8b.
Tax Year 2018- line 7.
Tax years prior to 2018:
- If you filed Form 1040, your AGI will be listed on line 37.
- If you filed Form 1040A, your AGI will be listed on line 21.
- If you filed Form 1040-EZ, your AGI will be listed on line 4.
Taxable Benefits Reported in Earlier Year
This will be the amount of Taxable Social Security Benefits that were reported for the year referenced. If you did not report any Social Security Income on your return within the referenced year, please leave this amount blank.
You must enter this information for each year in which the lump-sum contains Social Security Income.
For more information please visit Publication 915 Social Security and Railroad Retirement Benefits