Are SSD Lump sum for prior years taxable

[YankeeGirl]

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 

[jeffmcpa2010]

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-]

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.

[BobKamman]

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-]

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

[YankeeGirl]

His state pension is 24000 , no federal or taken taken out, but NY wont be taxed

lump sums:

2018: 47,702

2019: 46,945

2020 : 45,672

so 2022 he received 110,429 , that is for 2021 annd 2022

[YankeeGirl]

were they taxable?

[Just-Lisa-Now-]

ya, thats gonna sting a bit...have the kleenex ready