Akela received a lump-sum Social Security payment in 2021 that included benefits for an earlier year. After the lump sum some worksheets are completed, which is the best way to treat this lump sum payment?

Amend the prior-year tax return to include the benefits attributable to that year.

The benefits attributable to Prior years are reported on Akelas Schedule 1 (Form 1040), line 21, as other income.

The total taxable benefits are reported on Akelas Form 1040, line 6b.

The total lump sum payment is included in current year income and reported on form 1040, line 6b.