How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wendy Reed Your Own Question
Wendy Reed
Wendy Reed, Enrolled Agent
Category: Social Security
Satisfied Customers: 3346
Experience:  15+ years assisting tax clients with taxation and eligibility of Social Security Benefits.
753989
Type Your Social Security Question Here...
Wendy Reed is online now
A new question is answered every 9 seconds

Do I have to claim the ss benefits distributed in 2012 that

This answer was rated:

Do I have to claim the ss benefits distributed in 2012 that were for 2009, 2010 and 2011
I am LawGuy. I will be assisting you today.

I am sorry to hear of your dilemma. It must be very frustrating for you.

Unless you paid taxes for the distributions in the year for which they are attributable, you would report them in the year disbused and pay any tax liability in the dibursement year, as well.

I hope this answers your question.

It has been my privilege to assist you. Please remember to rate my answer when our communication is completed so I will be compensated for my time in providing you with the information you requested. If you feel the need to provide a low rating, please stop and reply to me via the REPLY or CONTINUE CONVERSATION button with whatever issue or clarification you may need. I will happily answer your follow-up questions and assist you until I am able to explain the answer to your satisfaction. Please also remember that I cannot control whether the law is favorable to your situation, so please do not penalize me for having to deliver bad news.

LawGuy

When you receive a Customer Satisfaction Survey from JA/Pearl, please do rate me highly (8-10). It benefits my ability to assist you and other customers and would be most appreciated.

Hello,

 

When you receive a lump sum from Social Security that includes payments for previous years, you do report the income on the return the year you receive it.

 

However, you have the option to make a "lump-sum election"--"you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. You can elect this method if it lowers your taxable benefits."

 

In my experience, if your income is similar for 2009-2012, the lump sum election will not lower your tax....but it is worth a try to figure this out. It is a tedious process, but still worth looking into. The instructions and worksheets on how to do this are in this publication, starting on page 11... http://www.irs.gov/pub/irs-pdf/p915.pdf

 

Please let me know if I can assist you further.

Wendy Reed, Enrolled Agent
Category: Social Security
Satisfied Customers: 3346
Experience: 15+ years assisting tax clients with taxation and eligibility of Social Security Benefits.
Wendy Reed and other Social Security Specialists are ready to help you