Client received 81K SS security lump sum benefits in 2014. 60K was for prior years. They had medical insurance thru the market place they now have to pay back 8K of the PTC they received.Is there away around this? They had no idea if they would win their case or when the money would come.
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A way around ... what? Reporting the social security benefits on his tax return, or repaying the $8k?Originally posted by MDEA
If you're asking about the taxability of the lump-sum soc sec benefits, there is possible relief for that. See IRS Pub 915 for a detailed explanation.Roland Slugg
"I do what I can." -
Lump sum
I will look at that. I was hoping we could report the income in the correct year. Than the income would be less foi this year.Comment
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Lump Sum Election
You can report the income in the correct year. You need to go back to those years and figure the taxable income. Use the Lump Sum Election method in the current year and determine which method will result in the lowest tax.
brianEverybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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