the website has 2 different answers for tjis O$2,150 O $2,150 o $19,000 Mark for
ID: 2585079 • Letter: T
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the website has 2 different answers for tjis
O$2,150 O $2,150 o $19,000 Mark for follow up Question 6 of 75. Which option correctly completes this sentence? The social security lump-sum election means the taxpayer elects to treat the lump-sum social security benefit as if the benefits: O For prior years had been received in those years by amending the prior-year returns. O Had been evenly allocated among the reported years. O For prior years had been received in those years. O For prior years were received in the current year Mark for follow up Question 7 of 75 Walter reached age 70% in September of 2016 By what date is he required to begin taking the required minimum distribution from his traditional IRA?Explanation / Answer
The correct statement will be;
The social security lump-sum election means the taxpayers elects to treat the lump-sum social security benefit as if the benefits "for prior years were received in the current year".
A lump sum social security payment or benefits are the one which was paid or availed in the current year as back pay in the prior years. Any one can include the taxable part of a lump-sum payment of benefits received in a year in the income of that year, even if payment includes benefits for an earlier prior years.
In case of lump-sum election method, you recalculate the taxable part of all your benefits for the earlier year using that year's income. After that you have to subtract any taxable benefits for that year that you previously reported. The remainning will be the taxable part of the lump-sum payment.
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