Claim of Right

Forum|Forum|4 months ago
February 7, 2026
1 reply
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This year we received a lump sum payment following an SSD approval for my wife. Half of it was for 2024 SSD benefits. We then reimbursed her LTD carrier a large sum back. Our 2024 income was significantly higher than 2025 so we will need to seek a credit from last year’s taxes as opposed to the deduction in 2025. I will need to prepare the 2024 dummy return to determine the amount of credit but don’t think I can do it manually as we had a good bit of capital gains which were taxed at a different rate than our W2 wages. Is there a way I can access my 2024 tax return prepared on Turbo Tax mobile and just simply adjust my W2 wages by the amount we paid back and then determine the credit from there? Or do I need to prepare a full blown 2024 with all my W2 wages plus capital gains?

KrisD15

Level 15

That would not be a Claim Of Right.

Claim of Right is the other way around. it's when you have to pay back funds.

What I think you want to do is enter the 1099 and answer Yes to a partial lump sum.

Once this is stipulated, the program will help you determine if the 2024 tax on that part of the income (the amount attributed to 2024) is more advantageous for you than your 2025 tax rate.

It can all be done in your 2025 Tax Year TurboTax program and regardless of which year tax rate is used, it is all reported on your 2025 return.

HERE is a link with more information.

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GchataniAuthor

Level 2

Pretty sure is it is a Claim of Right Repayment. This year we paid her LTD insurance carrier $35,000 from the SSD lump sum payment. That $35,000 was reimbursed to the carrier for payments we received from the carrier in 2024 and we paid taxes on that last year. We should get a credit this year for the taxes we paid last year on that amount. I just need to figure out how to recreate my 2024 tax return less the $35,000. I know I need to purchase the 2025 Desktop version to complete the Claim of Right. I would rather not purchase the 2024 version just to calculate the amount of our credit (I.e. create the dummy return).