Hello.
I am on long term disability due to a work injury and have been in a workers comp lawsuit regarding the injury coverage. Due to the lawsuit there is a lean on these funds if a settlement is reached. I have to pay taxes on my long term disability income for 2022. However, I have settled the case, this month, and the disability funds are being repaid so the long term disability is not really income anymore. I shouldn't have to pay taxes on these funds anymore.
How do I reconcile this on my taxes?
Thanks,
Jason
