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Posted

Client received Lump Sum Distribution for SSDisability in 2007, covering part of 2005, all of 2006 and all of 2007. No problem with 05 & 07, but in 06, he had only $1150 in unemployment and his mother claimed him as a dependent as in that year she did totally support him. Now that he was awarded the SSD for 06, do I have to amend his mother's return, removing him as a dependent? I am going to do the Lump Sum Distribution for 07, as soon as the worksheet is available.

Thanks in Advance,

AnnieR

Posted

No, he did not have the money in 06, so no need to amend. Just use the lumpsum distribution worksheet this year, it does not change the prior years. It's just taxed as if received over the prior periods, but it does not change the prior periods at all.

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