Hi,
I started receiving Long Term Disability benefits from an Insurance Co. in 2020. In 2021, I was approved for SSDI benefits and they gave me a lump sum, which I in turn gave to the Insurance Co. The lump sum repayment does not show up on the W2 from the Insurance Company. I read a similar post regarding a 'Claim of Right' which I think applies to me as well... (https://ttlc.intuit.com/community/taxes/discussion/ssa-1099-lump-sum/01/1865495#M666411)
My question are:
1) I use the Desktop version and deleted the 2020 version and have already installed the 2021 version. To figure out the tax difference in 2020 with and without the SS payment, do I need to reinstall the 2020 software? Or, under 2021 Other Deductible Expenses, can I just put the total amount of the lump sum that applied to 2020?
2) The tread above mentions State taxes... I have not even started looking at that yet... I am in Indiana. Do I have to do anything for my State taxes regarding this?
Thank you!
