1040 - Lump Sum Social Security Distributions

Where can I enter lump sum Social Security distributions?

Use the LSSA screen to enter and calculate the taxable amount of lump sum Social Security distributions received in 20YY. You must complete all fields on the LSSA screen; see the F1 field help for details.

IMPORTANT: Lump-sum amounts entered on the LSSA screen should not be included in the amount entered on screen SSA. Current year SSA distributions are entered on the SSA screen. 

Drake Tax generates the required Lump Sum Benefits worksheets based on what is entered in data entry. These worksheets are:
  • Wks SSB-1
  • Wks SSB-2
  • Wks SSB-3
  • Wks SSB-4

You can override calculation using screen 3. No Lump Sum Benefits worksheets are produced if you use the overrides. 

The LSE literal only prints when the lump sum election is of benefit to the taxpayer and is being used on the return. If the amount on Wks SSB-4, line 21 is smaller than the amount on Wks SSB-1, line 19, then it will be used. See Publication 915 for details and other information about using the lump sum election. 

Worksheets 2, 3 and 4 are available in the "Worksheets" section of Publication 915. The worksheets are also available in the software at Tools > Blank Forms. Click Search, enter LUMP in the Form Search dialog box and click Search.