Do I need to file a tax return this year if I received a lump sum back payment from SSD?
I have never filed taxes before due to my low income.
- ?Lv 78 years agoFavorite Answer
SSD social security disability payment and you do have a SSA-1099 in your hand from the SSA for this lump sum payment amount RIGHT and also so does the IRS for this purpose.
YES this is very possible for you to have to do for this problem at this time in your life of the back pay lump sum amount for the past years.
And you will know what amount if any will be taxable income to you until you do get the income tax return filled out correctly until you do complete that tax year income tax return for that purpose and then you can go from that point on to take care of this problem using the below enclosed information for this purpose.
You cannot amend returns for prior years to reflect social security benefits received this year. You must include the taxable part of a lump-sum payment of benefits received in the current year (reported to you on Form SSA-1099) in your current year's income, even if the payment includes benefits for an earlier year.
However, there are two ways to determine the amount of income to include:
You can use your current year's income to figure the taxable part of the total benefits received in the current year. OR
You may make an election to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year.
You can select the lump-sum election method if it lowers the taxable portion of your benefits.
Under this method you refigure the taxable part of all your benefits for the earlier year using that year’s income.
Then you subtract any taxable benefits for that year that you previously reported.
The remainder is the taxable part of the lump sum payment.
There are worksheets in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to help you calculate the taxable portion using this method.
Use the search box at the www.irs.gov website for the below referenced Additional Information:
Publication 915, Social Security and Equivalent Railroad Retirement Benefits
Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits.
Hope that you find the above enclosed information useful. 06/09/2012
- troLv 78 years ago
if you receive a 1099 reporting it, it is to be reported and very likely taxable
just so happened I had a client who never received the 1099 but IRS was informed of the disability payment covering a period in each of two years, which is taxable in her case due to other income
- tillLv 44 years ago
No, there is not any magic do it as quickly as deal. possibly your buddy is complicated their taxes with their SSA retirement pay. which would be repaid and then reapplied for, yet you does not get a lump sum, in basic terms larger month-to-month funds and a 15-20 365 days payback era formerly the whole is larger.
- Anonymous8 years ago
If you are married filing separately, yes.
If you are single and this is you only income, no.
Otherwise post your SSDI, other income, filing status and if married, their income.