Social Security again

[MargaretMort]

I have been thinking--always dangerous for me--and realized that I have not done the SS Disability payment quite correctly. My reading says to calculate the 2009 SS payment without the earlier 3 years that were included, then do the Lump Sum election. I understand all that. My question is: When I subtract the preceding 3 years from the total the 2009 payment is less than the 2008. The client also received Attorneys fees. Is that added to the 2009 payment, taxable on that side and then deducted on the Sch A, Misc.? I assume so but they owe a lot of money and I don't want to add to it erroneously.

As always, thanks. I have never had anyone in this situation so I am a "newbie" and want to do it right.

MM

[jainen]

>>Is that added to the 2009 payment<<

The ENTIRE gross amount is the 2009 payment (line 20a). The lump sum election is a method of calculating how much of the entire 2009 payment is taxable (line 20b). The legal fees are not part of that calculation, except for being included in the gross amount.