Hi Larry,
I just signed up for SS, at age 67 +2 months, requesting payment to start November 2021. I was contacted by SS advising and asking if I wanted to back my payment up to May 2021 which will activate a check for months May - December. I thought about it and decided to go ahead and take the offer of starting my SS as of May 2021. I received a lump payment from SS in January 2022 Now, I am concerned.....I know SS sends out a 1099 in January for money paid the previous year. Will SS consider the amount I was paid in January 2022 as benefits paid for months in 2021 and will I get a 1099 for 2021? If so, I think I am in trouble as my earnings for 2021 will then exceed the $88,000 maximum when including unemployment & SS. Can you advise please. Thank you. Trudy

Hi Trudy. For tax purposes, Social Security benefits count as income in the calendar year that the benefits are paid even if the payment represents benefits for a previous year. Therefore, if Social Security paid you your back pay in January 2022, that income will be included on your 1099 for the year of 2022, not 2021.

Best, Jerry