DORFMONT[at]aol.com wrote:

- quote -

Many thanks for that great news! You made my day!

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There is a way to treat Social Security payments received in
the current year for prior years as if they were received in
the prior years. You must use a complex worksheet available
in the Social Security Income IRS publication and you will
need your prior years' tax returns. After completing the
worksheet, you make a formal written election to have the SS
benefits taxed as if they were received in prior years.
Enter the taxable SS on your tax return for the current year
and expect a letter from the IRS. They never pay any
attention to the worksheets and need to be "educated" about
this.

Linda Dorfmont E.A., CFP, CSA

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spamless_in_seattle[at]yahoo.com wrote:

- quote -

Clarification here. You DID dispose of the stock, right?
Just a decline in value gives no tax deduction.

But assuming you did:

- quote -

Any of the annual 3000$ loss not benefiting you in that year
automatically does not get "wasted" that year, but carries
forth. I hope that's good news for you. > > Now I'm
expecting to receive Social Security back payments > for
about $10,000 and the attorney who is representing me > says
that I'll have to pay taxes on that amount. > > I'm
wondering if there's any way to go back an file ammended returns so the investment loss I suffered back when I had no
- quote -


therefore, no need for amended returns.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 30 Jan 2005

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A few years back my health started to decline and I wasn't
able to continue working. I applied for Social Security
disability benefits but it took years before I was finally
approved and got my first check. In the meantime I had to
pay the bills and saw my savings dwindling so I started
playing the market with my savings (I know, big mistake) to
try to make them last longer.

I put all my money into a single company (I know, and even
bigger mistake) and then suffered a really big (for me)
loss.

I started filing my taxes online that year, and the software
automatically spread my loss out over the next three years.
But it didn't do me any good because my income was so low.

Now I'm expecting to receive Social Security back payments
for about $10,000 and the attorney who is representing me
says that I'll have to pay taxes on that amount.

I'm wondering if there's any way to go back an file ammended
returns so the investment loss I suffered back when I had no
income could be deducted in the year when I receive the lump
sum payment for back payments.

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