I received a lump sum payment of $63,000 from Social Security, for years 2020 & 2021 in 2021. At the beginning of 2022, I paid back the $63,000 to my long-term disability company. Supposedly, the disability company will send a form about the repayment for 2022, prior to the filing of year 2022. The lump sum has "increased" our gross income, and significantly increased the tax due.
Can I show the repayment on the 2021 tax return, thereby nullifying that extra income? Or, do I have to wait to claim the overpayment in 2022?
My spouse and I are filing "Married filing jointly", taking the standard deduction.
