We had to pay back percentage of long term disability insurance after he received social security benefits. Where would we claim that amount on our taxes?

Was the amount more or less than $3000?

Did you get a W-2 form the LTD insurer?  If so, was the payback reflected on it?

Paid back 13,668. No formal "form" . A letter from insurance co. saying we can claim overpayment if we file a 1040 not 1040ez

going through the turbo tax info. I don't know where to enter this amount 13,668 we paid back to the insurance co. no formal "form" from the insurance co. just a letter

Did you pay back in 2015 or 2016?  And did you receive any LTD benefits that same year?

we got a w2 2014 for 22,340 we claimed on 2014. got money back on federal but paid on state

But when did you do the pay back?

payback was 2015

He was denied Social security at first, had a lawyer paid him 4939.00 (could that be claimed?).We then had to pay insurance back.

If you received money in 2014 and paid income tax on it with your 2014 tax return, and paid it back in 2015, then you can make a claim of right payment on your 2015 return using one of the two procedures described below.  If you already filed a 2015 return, you will have to file an amendment.

However, if the disability income was not taxed in 2014, you can't deduct the repayment.  (You can't take something off your taxes if it was never on your taxes in the first place.)

Generally you can deduct attorney fees related to the collection of taxable income.  Unfortunately, since you are ending up having to repay the money, it either was not taxed before, or you are going to deduct it now.  Since you end up with no taxable income for this event, you can't deduct attorney fees as an expense.

Did he also receive LTD benefits in 2015?  If so, his 2015 W-2 from the LTD carrier may have already subtracted out the payback amount from what he received that year.  (This is what happened to a family member of mine.)

Repayment over $3,000.   If the amount you repaid was more than $3,000, you can recover the tax you originally paid using one of two methods. You can do it as a deduction on schedule A or a tax credit on line 73 of the 1040 form if when you included the income in a previous year, it appeared that you had an unrestricted right to it.

Figure your tax under both methods and compare the results. Use the method (deduction or credit) that results in less tax.

Method 1.   Claiming a deduction for the repaid amount. You deduct it as a miscellaneous itemized deduction on Schedule A line 28.

This is the flow in TurboTax:
Federal taxes > Deductions & credits > I'll choose what I work on > Other deductions and credits > Other deductible expense>Go thru to third screen> answer YES to "Did you have any other deductions that are not subject to the 2% limitation?"
Enter the amount you repaid under, "Claim of Right Repayment (Only if over $3,000).

Method 2.   Figure your tax claiming a credit for the repaid amount. Follow these steps.

1.     Figure your tax without deducting the repaid amount.

2.     Refigure your tax from the earlier year without including the income that you had to be repaid.

3.     Subtract the tax calculated in (2) from the tax shown on your return for the earlier year. This is the credit.

 This is the flow in TurboTax (This can only be done in the Forms mode of the Desktop version of TurboTax)

I've included a link to the IRS website for your reference: https://www.irs.gov/pub/irs-pdf/p525.pdf

I see that this was from two years ago. Does the 2018 version of deluxe online turbotax do this or would i have to purchase the desktop version? and if so, would all the info I already put in transfer over?

If you want to do method 2 you must use the downloaded version Deluxe or better.  And you can continue the return if you switch over...  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901476-how-do-i-switch-from-turbotax-online-to-the-turbotax-software">https://ttlc.intuit.com/questions/1901476-how-do-i-switch-from-turbotax-online-to-the-turbotax-software</a>

I will have to complete this in 2019 for my 2018 return. I understand how to show it at the federal level. Michigan also taxed this as income. Do you know how to enter it on that tax return?