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Get your taxes done using TurboTax
You are a cash basis taxpayer. Ideally, you pay tax on amounts you actually received in the tax year.
You do not pay tax on the same income twice.
Were you issued a Form 1099 or other document in connection with the completion of the bankruptcy process?
It sound to me like you were a creditor in bankruptcy and the amount you received was back wages that you had already recognized on your 2019 tax return.
‎September 27, 2023
2:22 PM