Three years ago I was injured on the job and after months of waiting I was finally awarded Social Security that is retroactive to the date of injury. I finally got a sizeable amount of money in the mail in April and dont know how I should file it. My wife thinks I should refile the last three years and add the amounts for each year to the other returns and I was told it was to be reported on my '08 as income. Are either of us right?
Although the income covers a period of 3 years or so the income was realized in '08 and is typically filed in the year it is recieved. However, you might elect to review the prior years and apply the income to those years and see if it benefits you to refile. If the savings is greater than the cost of refiling those returns you may elect to do so.
Thursday, June 5, 2008
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