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LawTalk
LawTalk, Attorney
Category: Social Security
Satisfied Customers: 37855
Experience:  I have 30 years of legal and litigation experience, including representing clients before the U.S. Social Security Administration.
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Box 3 of SSA-1099 show 4 years of benefits recieve this

Customer Question

Box 3 of SSA-1099 show 4 years of benefits recieve this year. can we go back and claim the SS in those prior year and claim only 2015 for 2015?
Submitted: 1 year ago.
Category: Social Security
Expert:  LawTalk replied 1 year ago.

Good afternoon Phillip,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.

There are two ways to deal with retroactive payments from social security on your income tax return.

First you can report the retroactive income in the year in which you received it. If you do this however, the taxable portion of your benefits will all be taxed using that year's tax rate that you happen to fall in.

The other way to deal with the retroactive benefits is known as the "lump sum election". Using this method you are allowed to determine your tax rate on the payment as if you had been receiving the benefits dating back to the first payment date represented by the retroactive payment

With the lump sum election, you are allowed to factor in all of your deductions for every year in which you should have received benefits.

Here is a link to an IRS article on lump sum election: http://www.taxmap.ntis.gov/taxmap/pubs/p915-003.htm

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please be so kind as to rate my service to you. That is the only way I am credited for assisting you.

I wish you and yours the best in 2016,

Doug

Expert:  LawTalk replied 1 year ago.

Good afternoon,

Do you have any additional questions that you would like me to address for you? In case you would like a phone call to further discuss these issues you have raised, I will make that offer to you. You are certainly not obligated to accept a call offer, but many people do find it helpful for clarification purposes, as well as to allow them to ask additional questions.

If I have provided you with the information you were seeking, would you please now rate my service to you?

Thanks in advance,

Doug