TP has SS lump sum - MFJ prior, single HOH now.

[schirallicpa]

I have never posted so many questions on this forum.  Remind me to make another donation!

Client receives SSA-1099 with 120000 of benefits, much of which is for 2012, 2013, 2014, 2015.  During all of those years she was married and filed MFJ.  Divorced final in 2016.  Now filing HOH.

During all of those previous years her X received SS benefits.  My client received SS benefits in 2015 only.

Looking at the lump sum worksheet.  First line - enter the total amount form box 5 of all your forms ssa1099 for earlier year plus the lump sum for the earlier year.  ok - I assume I am only putting my client's ss benefit, not her now estranged spouses benefit.(?)

But - line 3 - enter AGI.  Well - if I'm only counting her SS benefit, then why am I putting their AGI.  

Then move to line 7 - enter taxable benefits reported on your return for the earlier year.  Ugh - do I figure just the amount that would have been reported for my client's portion of SS benefits, or do I put their combined taxable benefit. 

Do I need to go thru lump sum worksheet for each previous year - for the husbands taxable benefits.  

 

I guess my question is - do i try to separate hers from his as we look back, or do I take their combined each year.  

I beginning to believe there should not be joint tax returns, that we each should just file individually.......

[Catherine]

51 minutes ago, schirallicpa said:

I beginning to believe there should not be joint tax returns, that we each should just file individually.......

That's what they do in Canada.  Makes *tons* of sense.

[jklcpa]

3 hours ago, schirallicpa said:

I have never posted so many questions on this forum.  Remind me to make another donation!

Client receives SSA-1099 with 120000 of benefits, much of which is for 2012, 2013, 2014, 2015.  During all of those years she was married and filed MFJ.  Divorced final in 2016.  Now filing HOH.

During all of those previous years her X received SS benefits.  My client received SS benefits in 2015 only.

Looking at the lump sum worksheet.  First line - enter the total amount form box 5 of all your forms ssa1099 for earlier year plus the lump sum for the earlier year.  ok - I assume I am only putting my client's ss benefit, not her now estranged spouses benefit.(?)

But - line 3 - enter AGI.  Well - if I'm only counting her SS benefit, then why am I putting their AGI.  

Then move to line 7 - enter taxable benefits reported on your return for the earlier year.  Ugh - do I figure just the amount that would have been reported for my client's portion of SS benefits, or do I put their combined taxable benefit. 

Do I need to go thru lump sum worksheet for each previous year - for the husbands taxable benefits.  

 

I guess my question is - do i try to separate hers from his as we look back, or do I take their combined each year.  

I beginning to believe there should not be joint tax returns, that we each should just file individually.......

 

You would enter the items of income from those prior year returns that would include the ex's share. In the end, what is happening on the worksheet is that it is calculating the hypothetical tax under a scenario as if your client received it during each of those prior years using the rules, rates, and filing status in effect and based on everything included on those actual returns that were filed...and then toward the bottom on lines 18-20 it compares the calculated results in the worksheet's "what-if" scenario to what was actually reported.  The end result should be what is attributable solely to your client and the addition of the new lump sum payout had he or she had the SSA benes paid during those years.  Does that make sense?

[schirallicpa]

thank you for making sense of it.