you can spread it out over the last three years not just lumped into this one year, if that lowers your tax burden. look at the tip under lump sum option in link below.
http://www.irs.gov/publications/p915...blink100097893
even if you make over 25,ooo it all then doesnt become taxable there is a worksheet to fill out in the IRA 1040 instructions.
Quote:
Originally Posted by Babyboomer15
Here's my situation. I was awarded SSDI late in October last yr with benefits beginning June 2007. I also was on LTD. I received the backpay in late January 2010. I paid back LTD the overpayment and only had about 11 grand leftover. So does the 11 grand get added to my already monthly benefits ,then that would send me to about 32 grand at the end of the yr.,including the monthly 100 dollar LTD payment. Would everything over 25 grand be taxable or how does that work?
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