Which of the following options correctly completes the sentence?

The social security lump-sum election means the taxpayer elects to treat the lump-sum social security benefit as if the benefits:

a) For prior years had been received in those years, by amending the prior-year returns.

b) Had been evenly allocated among the reported years.

c) For prior years had been received in those years.

d) For prior years were received in the current years.

Question

Julio Summers

Business

18 August, 03:17

Which of the following options correctly completes the sentence?

The social security lump-sum election means the taxpayer elects to treat the lump-sum social security benefit as if the benefits:

a) For prior years had been received in those years, by amending the prior-year returns.

b) Had been evenly allocated among the reported years.

c) For prior years had been received in those years.

d) For prior years were received in the current years.

+3

Answers (1)

Know the Answer?

Olive Lamb · Answer 1

The correct answer is letter "D": For prior years were received in the current years.

Explanation:

The Social Security lump-sum election refers to a payment made in the current year based on similar payments sent on previous years. That payment could be subject to taxes. The Average Gross Income (AGI) of the taxpayer will determine if the lump-sum is taxable or not.