RSUMan
Employee Tax Expert

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.