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Category: 1099's

Lump-Sum Social Security Payments

To enter a lump-sum payment listed on your 1099-SSA, please go into the Federal Section >> Income >> Enter Myself >> IRA/Pension and Social Security Benefits >> Social Security Benefits >> Lump-Sum Payments (Begin Worksheet). Each field and the information within are listed below.


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 2015 and 2016.  On this section, you will enter the information solely for the 2015 year


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 SS 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 2015 and 2016, $8,000 of that was for 2015.  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:

* 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 SSI 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.

For more information please visit Publication 915 Social Security and Railroad Retirement Benefits