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?

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 -

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.

Quote:

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Originally Posted by 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.

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

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

Where on the tax forms do you take this deduction?

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?

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