Thank you so much for the information. This is clearly good news. I do have some follow-up questions. I must be doing something wrong, as its making way too much of a difference.
Step 2 - Select the return for the year you received the money - I received all of the money in 2021, although some was allocated to 2020 and 2019 (per my SSA-1099). Since I received all the money in 2021, do I use that tax return (ie, my current return) to do the copy/calculation?
Step 7-Adjust the Income - Do I do this by adjusting Box 5 of my SSA-1099? My repayment was split into various amounts - some for LTD (no broken by CY/PY), some for CY STD and some for PY STD (no broken by 2019/2020). The CY STD amount was reduced because I paid it back in one lump sum (so they said it was reduced for not having taxes taken from it had it been paid in installments). I don't believe I paid taxes on the original LTD benefit, based on the fact I paid for the LTD plan with post-tax dollars (my 2021 W2 had nontaxable third party sick pay in box 12J equal to my 2021 YTD LTD benefit). I included all amounts (total LTD, CY STD and PR STD) in the step 7 adjustment. Is that correct?
After I made the adjustment to income, TT took me to the screen where the SSA-1099 had amounts for 2020 and 2019. I did not make any adjustments to those amounts. Is that correct?
Step 8 - original total tax-updated total tax =claim of right credit = 9120. I noted that the Federal Tax Owed actually changed by 9420, so there was an additional $300 credit coming in somewhere that was now kicking in based on the lowered income. I ignored this in the steps to follow.
Applying the credit step 5/line H, adjusted amount of tax paid - I set that equal to the updated total tax from step 8 - correct?
step6/line E - I set that equal to the claim of right credit from step 8. I must be doing something wrong somewhere, as the Federal Tax OWED went from 20158 to a REFUND of 10922 (so a 31080 turn around, versus the 9420 change in the copy/calculation file).
