Social Security Income > Back Payments

Previous Page: Pensions/Annuities/Retirement Plans (i.e., 401(k), etc.) > Types of Plans

Next Page: Social Security Income > Regular & Disability Benefits
Use

to find additional instances of index items.

Frequently Asked Tax Questions

Social Security Income - Back Payments

Rev. date: 1/2009

I received social security benefits this year that were back benefits prior years. Do I amend my returns for prior years? Are the back benefits paid in this year for past years taxable for this year?

Considered Taxable Income (SSA)
Social Security Disability Benefits
Social Security Survivor (Death) Benefits
Social Security and Railroad Retirement Benefits
Special Rule for Canadian and German Social Security Benefits
Taxable Income

You cannot amend returns for prior years. You must include the taxable part of a lump-sum (retroactive) payment of benefits received (reported to you on Form SSA-1099) 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:

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.


Previous Page: Pensions/Annuities/Retirement Plans (i.e., 401(k), etc.) > Types of Plans Next Page: Social Security Income > Regular & Disability Benefits Use to find additional instances of index items.