Taxation of Lump Sum Social Security Disability Payments
Eva Rosenberg of MarketWatch looks at how lump sum payments for Social Security Disability are taxed.
- Is Social Security Disability Income subject to taxation? – Yes, in the same way that retirement Social Security payments are taxed.
- Does a lump sum that includes payment for previous years need to be reported in a single year? – Yes, but see article for details.
- Do you need to file amended returns and report the amounts awarded in the year they should have been received? – No
This entry was posted by David on February 20, 2007 at 10:53 pm, and is filed under Social Security, Tax. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.