[cincolrn39]

HI,
I received a lump sum social security payment for back pay for years 2004 through 2007. I had to pay the lump sum to my insurance company since they paid me for those years already.
My question is when I fill out taxes, I can claim a credit for the tax in those years since the repayment was more than 3000. When figuring the new tax for the past years it asks for AGI, do I put in what was originally filed or figure the AGI taking off the income that I already paid back?

[JudyKayTee]

I can't answer the tax question but am curious about you having to pay back the insurance company - if you are comfortable giving out the info, could you just post a little more info?

Thanks -

[cincolrn39]

When I got disabled my long term disability insurance paid my wages until I got approved for social security, so when I got the lump sum back I had to pay back the portion of the lump sum that the insurance company had already paid me for the past years.

[JudyKayTee]

When I got disabled my long term disability insurance paid my wages until I got approved for social security, so when I got the lump sum back I had to pay back the portion of the lump sum that the insurance company had already paid me for the past years.

I'm impressed - maybe that's a common practice but I've never seen it before. Makes sense, of course.

[AtlantaTaxExpert]

If you paid taxes on the disability you received, you should be allowed to claim a deduction for the repayment of those benefits.

[coljph]

Where on the tax forms do you take this deduction?

[coljph]

Where on the tax form do we take the deduction for the Social SEcurity money turned in to the disabilty company from the retro lump sum?

[AtlantaTaxExpert]

It would probably be an itemized deduction taken in the Miscellaneous deduction section of Schedule A.