Level 2

Lump sum social secuirty

Forum|Forum|6 years ago
March 13, 2020
3 replies
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I have a client who received a lump sum SS benefit in 2019 over 100000.00 He has no other income I worked through the back years worksheets and he has zero tax. My question is-- Does he have to file?The program is telling me he ineligible for efile so should I paper file the return?

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Level 15

I used Google on the Web to find the IRS resources:

https://www.irs.gov/faqs/social-security-income/back-payments/back-payments

Try it. It's works great.

*******************************Don't yell at us; we're volunteers

DeedeedirektAuthor

Level 2

unfortunately i could not find the answer to my question there

Level 15

Yes, paper file. IRS doesn't want its e-file servers cluttered by disabled people.

DeedeedirektAuthor

Level 2

Thank you for the answer i have had this situation before but not that large of a lump sum.

Level 15

"unfortunately i could not find the answer to my question there"

Yes, the answer was there.

"My question is-- Does he have to file?"

Yes; the answer was there.

"The program is telling me he ineligible for efile so should I paper file the return?"

Yes, the program is correct.

*******************************Don't yell at us; we're volunteers

Level 6

He does not have to file if his only income is social security; even with it being a large lump sum.

Preparing taxes is not my life, but my life is amazing because I prepare taxes.

Level 15

He has to file to show he qualifies for the exclusion based on how much of the payment is attributed to prior years.

Those who choose to report phantom income should remember: The more we try to trick the IRS computer, the more it may try to trick us.