This tool calculates the amount of Social Security that is taxable when the taxpayer receives a lump sum (retroactive) payment. There are two methods for calculating the taxable amount of a lump sum payment. The payment can either be left as part of the Social Security payments for the current year, or if the payment is for benefits in a previous year, you may be able to reduce the taxable amount by determining how much of the payment would have been taxable if you had received it in the year it was intended.
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Filing Status
Social Security
Income
Tax-Exempt Interest
Adjustments
Taxable Social Security (if taxed in current year)
0
0%
Alternate Calculation Method (if taxed in year owed)
0
0%
Filing Status from Previous Year
Lump Sum Payment Amount (SSA-1099, box 3)
AGI from Previous Year (1040, line 11)
Tax-Exempt Interest from Pevious Year (1040, line 2a)
Total Social Security from Pevious Year (1040, line 6a)
Taxable Social Security from Previous Year (1040, line 6b)
Taxable Social Security
0
0%
Filing Status from Previous Year
Lump Sum Payment Amount (SSA-1099, box 3)
AGI from Previous Year (1040, line 11)
Tax-Exempt Interest from Pevious Year (1040, line 2a)
Total Social Security from Pevious Year (1040, line 6a)
Taxable Social Security from Previous Year (1040, line 6b)
Taxable Social Security
0
0%
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The current filing status. The amount of Social Security that is taxable is the same for all filing statuses except married filing jointly (MFJ).
Enter the amount of Social Security payments you (and your spouse) received this year. This amount is on form SSA-1099, box 5. It includes the amount paid for this year's benefits plus any lump sum payments listed in box 3.
Enter the total amount of taxable income, except qualified dividends and Social Security. It is the sum of the following fields from form 1040.
This amount should be the same as Total Income from form 1040, line 9, except with taxable Social Security subtracted out.
Enter the amount of tax-exempt interest. Even though it is not taxable, it is used to determine how much of Social Security is taxable. The tax-exempt interest is on form 1040, line 2a
Enter the amount of adjustments here. Adjustments are expenses that can be deducted from taxable income even if you do not itemize deductions. Adjustments are listed on form 1040, schedule 1, part II, and the total is on form 1040, line 10. Do not include the following adjustments.
This value is computed by the tool. It is the amount of Social Security that is taxable if you use the standard method for calculating the taxable amount.
This value is computed by the tool. It is the percentage of Social Security that is taxable if you use the standard method for calculating the taxable amount.
This value is computed by the tool. It is the amount of Social Security that is taxable if you use the alternate method for calculating the taxable amount.
This value is computed by the tool. It is the percentage of Social Security that is taxable if you use the alternate method for calculating the taxable amount.
This is the filing status from the year of the lump sum.
This is the amount of the lump sum payment from SSA-1099, box 3 for a previous year. If there is a lump sum payment for the current year, it is already included in the benefits for the current year and should not be entered here.
This is the adjusted gross income from the previous tax year. it is form 1040, line 11.
This is the Tax-Exempt Interest from the previous tax year. it is form 1040, line 2a.
This is the total Social Security from the previous tax year. it is form 1040, line 6a.
This is the Taxable Social Security from the previous tax year. it is form 1040, line 6b.
This value is computed by the tool. It is the amount of the lump sum payment that would have been taxable in the year it was intended for.
This value is computed by the tool. It is the percentage of the lump sum payment that would have been taxable in the year it was intended for.