Are SSD Lump sum for prior years taxable

Forum|Forum|4 years ago
April 5, 2022
3 replies
17 views

Client received $140,319 for 2018-2020 and this year states 110K SSD no fed was ever taken out? I came up with 79K as being taxable. Client is arguing that nothing should be taxable. i told him that there is no STATE tax

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J

jeffmcpa2010

Level 10

On the "Social Security Benefits Worksheet"

Scroll down to below line H is a box "Earlier Year Lump-Sum Benefits Smart Worksheet"

you can enter each years portion (SS portion and AGI) on a separate worksheet, and there is a worksheet (link on line 19) that figures the taxable benefits.

Just-Lisa-Now-

Intuit Community Champion

Well, if all he had was SS, he'd be right, non taxable....BUT if hes got other income, hes going to be in for a eye opening reality check.

Maybe his income in prior years was super low and he gets off easy.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

That's more than $45,000 a year in Social Security benefits? The most I have seen for anyone, a guy who paid on the earnings limit in many years and didn't start collecting until age 70, is about $32,000. Maybe you have to go back even more years. But yes, there is a worksheet for that. And if he had little or no other income, it might turn out to be nontaxable.

Just-Lisa-Now-

Intuit Community Champion

Ive had 2 of them this year with over 45k in SS benefits

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Y

YankeeGirlAuthor

Level 3

were they taxable?

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