Rev. date: 1/1/2010You 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.
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