Lump Sum payments are only required to be reported if your SSA-1099 Form has an amount listed for a prior year. If you do not have this on your SSA-1099 Form, you can skip this section.
How do I know if I received a lump-sum payment?
Generally, if you received a lump-sum payment, there will be an amount reported in box 3 of your SSA-1099 Form. The year (or years) the lump-sum payment is for should also be reported on your SSA-1099 Form in the box that states "Description of Amount in Box 3".
How to report a lump-sum payment?
To report your lump-sum payment within the program, please follow these steps:
- Log into your account
- Federal Section (Select My Forms)
- Income
- 1099-R, RRB, SSA (Begin)
- Social Security Benefits/RRB-1099 (Begin)
- Complete the information as provided on the SSA-1099 form. Include the total amount included on line 5.
- After completing the information, select Lump-Sum Payments (Begin Worksheet)
- Indicate the year the payment was for beginning with the previous year.
- Indicate the filing status on the return for the year indicated above
- Enter the amount of SSA payments received in that year (if any) - not the amount indicated on the current SSA-1099
- How much of this years SSA income was attributed to the tax year indicated above (box 3)
- Modified AGI for the prior year listed above
- Taxable benefits reported on the original return for the year listed above
Additional information on lump-sum payments can be found here.
You may also visit ssa.gov to access information about your benefits.