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11-Dec-2019 15:51

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I received social security benefits this year that were back benefits for prior years. Are the back benefits paid in this year for past years taxable this year?You can't amend returns for prior years to reflect social security benefits received in a single lump-sum in the current year.

Meredith collects data to deliver the best content, services, and personalized digital ads.In addition, SSI Back Pay is paid incrementally only, meaning you won’t receive all of you Back Pay in a lump sum as you would with SSDI.The stated reason for the delay is that lump sum payments would put too much of a strain on SSI’s financial resources.However, there are strict rules on when Social Security may reopen a prior application.

Once Disability Determination Services (DDS) has made its initial determination, Social Security generally reopen previous applications that are less than a year old for any reason if the determination or decision was incorrect when it was made, and Social Security's time limits and conditions are met.

To better understand the 5 month waiting period, we can look at two examples: Unlike SSI, Back Pay owed under SSDI can be received as a lump sum, although when payment will arrive is somewhat unpredictable.



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