I am receiving a lump sum either this month or next year I understand what I need to do regarding taxes because it will put me in a much higher tax bracket because I receive long-term disability. However this part is very confusing to me. I have to pay back the long term disability which I’ve heard of before and I know how you would write that off and itemize deductions however the lump sum that I’m getting I’m not giving directly to the long-term disability I am keeping it and having the long-term disability withhold their monthly payments from me starting this month. So how does that work how do I put that on taxes because I’ve already paid taxes on the money that they gave me throughout the years and obviously I will need that lump sum to pay what they’re not paying me if that makes any sense. I’m sure it won’t affect me this tax year but I’m getting prepared for next year.
