When we win your case, the chances are that your benefits for the current year include what you should have received the past few years. Because Social Security benefits are now taxable at certain predetermined income levels, your receipt of benefits for more than one year might make your "lump sum award" taxable. That's not fair. It's not right. And there are two ways we can make adjustments:

A. You first split the lump sum award by years. The amount for each year is noted in "Description of Box 3" on the SSA-1099 form you receive. Pull out your old returns, and for each year, determine how much Social Security benefits, if any, would have been taxable based on the worksheet calculations. Then add all the taxable amounts together, and show this number on the correct line on your current return with the letters "LSE" next to it.

If you are doing your own return and need work sheets for the determination of the lump sum taxability, call us and we'll mail you the form.

B. Your other option is to re-figure your old years and file an amended return for each one (Form 1040X). This is usually not a good idea. A tax preparer will charge you accordingly and you might open up the possibility of a tax audit on old returns. However, if the money is significant, don't let Uncle Sam keep your money. Keep him honest. It's the American way.