Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I received a disability this year that contained amounts…

Customer Question
I received a disability this...
I received a disability this year that contained amounts being paid out for the last three previous years. I am not sure how to report this income without it affecting my healthcare marketplace subsidy. It is going to appear as though all the income was for this year.
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
2/26/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,354
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello

The payment you received is taxable for the 2015 tax year. Even though it was a lumpsum payment for past years it is still taxable in the year received.

You must include the taxable part of a lump-sum payment of benefits received in the current year in your current year's income, even if the payment includes benefits for an earlier year.

There are two ways to determine the amount of income to include if this was SS disability:

  • 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 (including the lump-sum payment) 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. Add it to the taxable part of your benefits for the current year (figured without the lump-sum payment for the earlier year).
Ask Your Own Tax Question
Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago

Please respond after you read the above

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,354
18,354 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

18,354 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I'm trying to claim the "Not Affordable" option for an
I'm trying to claim the "Not Affordable" option for an exemption of not having healthcare. I meet the income requirement but I can't get information on the "subsidies/credits" I may have qualified for… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
I had a Healthcare Policy with Molina for Jan and Feb of
please, I had a Healthcare Policy with Molina for Jan and Feb of 2017 and received 2 subsidies, $584 for Jan 2017 and another $584 for Feb 2017. I turned 65 March 9, 2017 and notified Healthcare. gov … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
If someone got disability payments from their employer's
If someone got disability payments from their employer's insurance company in 2016, but then was approved for social security disability in 2017 and paid a lump sum covering that same period of time t… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Are you familiar with marketplace insurance and tax issues?
Hi. Are you familiar with marketplace insurance and tax issues? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,641 satisfied customers
I received a notification from teh ACA marketplace that my
Hi, I received a notification from teh ACA marketplace that my form 8962 was not received. I conta cted my tax person and he sent me copies of the 1095A and 8962 that were submitted with my 2017 tax r… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
My question is about the 1095-A tax document: I paid fully
Hello - My question is about the 1095-A tax document: I paid fully for my health insurance in 2016, no subsidies etc. In Feb. 2016 I switched from a silver to a gold p!an that began March 1, 2016. In … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,354 satisfied customers
In 2015, all I had to do was to submit the Marketplace form
In 2015, all I had to do was to submit the Marketplace form 1095-A with my income tax filing. This year, I did the same thing, but the IRS sent me a letter saying they needed Form 8962 completed and s… read more
Rick Martin
Rick Martin
MBA
92 satisfied customers
I paid part of the premium through my employer assisted
I paid part of the premium through my employer assisted healthcare program. what should I do with 1040 # 69 "Net premium tax credit. Attach Form 8962"? This is for "Marketplace" thing.… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Am not sure what category of law this falls under..........I
am not sure what category of law this falls under..........I got insurance thru the health care marketplace in 2014 and 2015....... I filed my taxes for those 2 years late ( 5 months ago) I got a requ… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,641 satisfied customers
Market place insurance for subsidy pension and social
Market place insurance for subsidy pension and social security is 72000 I get a non qualified check from saving acct from work. Im retired.the money is paid out 10 years. Do i have to count as income … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I am a divorced woman who filed last two years. My income
I am a divorced woman who filed for obamacare for the last two years. My income which comes from alimony that I receive monthly is 21,000 a year. I have a 401 K of which I borrowed 20,000 last year to… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,354 satisfied customers
This question is only to answer., I haven't done my
This question is only to answer., I haven't done my 2014 taxes yet so not sure if I will make under, the same or over as my guesstimate under ACA. If made more how is the IRS going to handle that in t… read more
Shawn P. Adamo
Shawn P. Adamo
CEO
Bachelor's Degree
18 satisfied customers
why does a retired person on social security retirement have
why does a retired person on social security retirement have to file taxes to get a health insurance subsidy?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I live in California and have been on SDI since February 2014.
I live in California and have been on SDI since February 2014. How do I file my taxes and if different than before, what will it affect ??… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Am receiving disability payments from private (I paid premiums)
Am receiving disability payments from private (I paid premiums) insurance policies. Understand they tax free. Assume I need to list on tax filing (joint - wife makes no income and neither do I other t… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,641 satisfied customers
I intend to claim my 26 year old grand daughter on my income
I intend to claim my 26 year old grand daughter on my income tax for 2013. She had no income for the year and lived in my home for more than six months . She recently enrolled,in a health insurance pl… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
My state government employer reports long term disability income
My state government employer reports long term disability income on a W2 as wages, but includes money I never receive because I'm paying back money I received and paid taxes on for three years before … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,354 satisfied customers
How does inheritance gift distributions affect the following
How does inheritance gift distributions affect the following to the recipient: Public Housing and Section 8 Housing in State of Maine? I would like to know whether receipt of such makes one ineligible… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,354 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x