Hi. My husband received social security disability backpay in 2024. It included payments from 2022-2024 when we applied. While we were waiting to get approved, his income continuation insurance paid us. However, then we got approved, got the SS backpay, and had to reimburse the insurance company for approximately $40,000 overlap.
Our 1099K from Social security states the income with back pay. However, it doesn't account for the part we had to pay back so we are getting taxed twice on that income. I've read a little about how you can put the double payment as a claim reimbursement deduction. Is that the best way to account for the $40,000 extra income?
Thanks.
