I have a similar question, but with an additional question.
I was disabled in 2018 and began receiving long term disability later that year via a Disability policy I was paying for from an insurance company. and these payments will continue for the next few years. I was approved for SSDI last year and received a lump sum with monthly payments to continue. I had to pay 100% of the lump sum to the insurance company, and my continuing monthly payments, which are tax free, are now reduced by the amount of the SSDI payments going forward. How do I handle the lump sum payment as well as the future payments? I'm not happy about replacing non-taxable payments (insurance proceeds) with possibly taxable payments (SSDI), but I had no choice.
I've researched this scenario, but found nothing other than this question. Thank you!
