Repayment
So if I had payment made to me in 2024 from long term insurance company and I had to pay half the amount back when I got my ss disability.
So when I received my disability back pay in Jan 2025. Shouldn't they deduct the amount I repaid from the amount they paid me?
Answers
-
Hello dbbashmore1963,
The insurance company and Social Security are two different sources of income. So the disability back pay was most likely paid in a lump sum in 2025 without a deduction for the insurance payment.
If the payment was included in your 2024 taxable income (on your 2024 tax return), the repayment may be deductible on your 2025 tax return if the Social Security payment didn't include the amount of long-term care benefits you paid back.
Typically, if you had to repay over $3,000 of long-term care benefits that were included in your income, you may be able to take a credit against your tax for the year in which you repaid it. This only applies to income that was included under a claim of right, which means that you reported income as taxable in one tax year but had to repay it in a future tax year.
If the total amount you repaid isn't more than $3,000, you can't claim a credit or a deduction for the repayment.
You can view more about the claim of right on pages 37-38:
0
