How to Handle Social Security Disability Lump Sum Payments on Your Taxes

About 8.6 million disabled workers received Social Security income benefits (SSDI) in 2011. That includes more than 1 million people who became new SSDI recipients in 2011.

People with arthritis dread the day they have to quit working and apply for SSDI. The process of applying for benefits and waiting for a judgment can cause great anxiety. It can be a long process, taking months or even years, in some cases. When that occurs, back benefits are awarded as a lump-sum payment.

It's important to know how to handle the lump-sum payment on your income tax return. Check out what experts at Allsup (a nationwide provider of Social Security Disability Insurance representation and Medicare plan selection services) told us about how you should handle lump-sum payments in: Social Security Disability Lump Sum - Is It Taxable?

Related Articles:

• SSDI - Do You Qualify?
• Response to Your Disability Application - Share Your Experience
• 61 Questions About Social Security Disability Services
• More Tax Advice, from About.com Guide to Taxes

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