Contact the Social Security Administration to get a breakdown by year of benefits to avoid taxes by apportioning prior year benefits to those previous years’ income (without filing any amended returns). Please see What is a lump-sum Social Security payment?
If you received a W-2 for LTD in tax year 2021 and you're repaying the LTD in tax year 2022, you'll need to report the W-2 in tax year 2021. In tax year 2022, you'll report a claim of right repayment.
- A Claim of Right Repayment is a deduction you can take in the current tax year if you’re required to pay back income in excess of $3,000 from a previous tax year that you thought you could keep. You reported and paid taxes on the money, not knowing you’d have to pay it back.
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