taxes - Disabilities Message Board

marys1358 · 01-24-2008, 04:42 PM

Hi Everyone,

I received my back pay in August 2007 what happens at tax time do we have to pay on the total amount or what?If we do can we have them take out federal taxes monthly so you don't have to pay all at one time.Not sure how this all works first year.

Thanks you,
Mary

rayefaye · 01-24-2008, 05:54 PM

You need to get the publication 915 which is used for lump sum payments. Are you doing your own taxes? What you do is go back and figure how much SS income was taxable for the previous yrs. You do each yr seperate, like you figure the taxable income for 2006, 2005 and then the taxable income for 2007. You then add up the taxable amounts from each yr and put them on your 2007 tax return. I hope this helps you understand what you need to do.

BlueAtlas · 01-24-2008, 06:14 PM

Do you mean that you go back and separate what portion of the lump sum was for what year? Do you file an ammendment for those years, then, or can you just put it all on the current year?

(I sure hope I'll have this problem!)

Emily

Queenneeee · 01-24-2008, 10:19 PM

WHAT AN EXCELLANT POST QUESTION !! This is esp. good at this time of year. I also would like some more info about back taxes and what to do with them. I received my backpay one week after New Years. (so nice they let me struggle through Christmas !! )It is for a total of 13 months which spans from 2006-Nov of 2007. I am going to have someone prepare my taxes this year because I think this will be difficult to do it on the internet myself this year. Another question I have, I just started to receive my SS checks in Nov of 2007 and was in so need of money I didn't have any taxes withheld (plus didn't want to mix them up anymore before they sent me my very FIRST check) so now I want to have taxes withheld so as not to have to pay for them at the end of the year but I do not know how much to have withheld. I am going to ask the person that is going to do my tax return but was just curious about the response I would get from my experienced friends here first. The government FINALLY gives it just to have us give it back later...hmmm ........thanks in advance .......take-care

happygirl440 · 01-24-2008, 11:35 PM

Don't forget about the state tax as well. Not all states tax SS but some do.
It may be worth paying someone to do your taxes for the year you get the back sum for. At least you got approved and your income now!