Question

A lump-sum election allows a taxpayer to:

Answer 1

Answer: 4^th option

This is the lump-sum election of figuring out the Social Security benefits of previous years. This is done as if those benefits were received in those previous years. The amendment of returns of those prior years is not permitted but calculations in this way should be done as if the taxable income on those years increases.

Any sort of tax adjustments regarding this should be done in the current year.