ANSWERS: 2
  • All income must be reported....period.
  • Your son will get a 1099R reporting all the money he has gotten from Social Security; it will be broken down in the bottom left hand corner of the form, ie 2004 $x, 2005 $y, etc. IF all of this is reported on one tax return, chances are he will pay taxes. There is a special computation that can be done (called lump sum election) which basically takes the money earned for 2004 and computes it against the 2004 income and tax return. How would it affect the 2004 tax return IF this money had been received in 1004. If no change, then that money for 2004 is non-taxable. continue with the other years...then take the final number to the 1040 and mark 'lump sum' election. If you are still unsure, see an Enrolled Agent who knows how to do this computation.

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy