Retroactive check and monthly check. Just won my ssdi court case.
2007-11-14 00:46:19 · 7 answers · asked by ANTHONY M 3 in Business & Finance ➔ Taxes ➔ United States
If you received a lump sum payment for retroactive benefits, you really need to have your situation reviewed by a professional experienced in this area. If the lump sum is large, you may have substantial taxes owed. If you put the entire lump sum into 2007, chances are good that a lot of that lump sum is going to be taxed.
There are options for you to have your taxes figured by going back to the years when you should have been receiving the SSDI payments, and pay taxes as if you received them in those years.
If in those years, you had little or no income, then the SSDI you have retroactively received for that year will not be taxed. But you have to document this in your tax return and prove that you in fact owed less tax than if you put all of the lump sum into 2007.
This is a one-time deal, and rather than learning all of this on your own, have someone figure it for you who has done this before.
2007-11-14 03:34:31 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
1
2016-10-08 09:00:15 · answer #2 · answered by Edward 3 · 0⤊ 0⤋
1. The tax treatment of SSDI is the same as for "regular" (old age) SS.
2. The lump sum is taxable, but you can cause it to be treated as though you received it in the prior years in which it should have been received, if that is advantageous. See IRS Pub 915 for details and a worksheet. Do not file amended returns for prior years, because of this.
2007-11-14 08:58:22 · answer #3 · answered by r_kav 4 · 0⤊ 0⤋
It depends on the amount and how many dependents you have. There is a work sheet to fill out on your income taxes, may have to claim some of it. SS will send you a statement with the amounts to put into the work sheet.
2007-11-14 00:56:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You probably won't have to pay taxes on the retro check.
However, depending on any other income, you may have to pay some income taxes if your monthly benefits plus other income exceed a certain amount. Your SSA office can tell you the amount, or you can visit their website.
http://www.socialsecurity.gov
2007-11-14 02:15:13 · answer #5 · answered by ~RedBird~ 7 · 0⤊ 1⤋
definite. the only requirement is which you report (whether you do not have income). you are able to bypass to many loose tax submitting amenities on your county's charity or social amenities. it rather is pointless to pay even some funds whilst your tax situation is actual trouble-free.
2016-09-29 05:29:01 · answer #6 · answered by scharff 4 · 0⤊ 0⤋
If it's your only income it is not taxable. If you have other income, up to 85% of it may be taxable.
2007-11-14 02:29:01 · answer #7 · answered by Bostonian In MO 7 · 0⤊ 0⤋