Social Security Benefits - Lump-Sum Payments

TaxAct® supports Worksheet 1 Figuring Your Taxable Benefits from IRS Publication 915 Social Security and Equivalent Railroad Retirement Benefits and calculates your taxable social security benefits for you from the information you have entered in the program.

Worksheet 2, Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993) and Worksheet 4, Figure Your Taxable Benefits Under the Lump-Sum Election Method, are also supported.

To enter the amounts in the TaxAct Program which will transfer to IRS Form 1040, U.S. Individual Tax Return, Lines 5a and 5b for the taxable amount of social security benefits from lump-sum Payments:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
  2. Click Miscellaneous Topics in the Federal Quick Q&A Topics menu and then click Lump-sum payment of social security benefits (scroll down if necessary)
  3. The program will proceed with the interview questions for you to enter or review the appropriate information