So, end of 2023 I had a car accident which left me unable to work, I want on STD and then in 2024 I went on LTD through my employers policy. So now filing my taxes for 2024, I have to claim the disability as earned income. However, in 2025 I just reached a settlement with my insurance company, but now I have to pay back all the Disability income that was paid in 2024. However, I paid taxes on that, so how do I get the tax back? Since the settlement is tax free. So, if I pay back the total received in 2024, then I shouldn't have any taxes. Make sense?
