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April 8, 2025
Question

I had to pay back money I received for long-term disability payments. How to I claim the amount I refunded? Pre 2024Amount $10653.90 Taxable percent 100%

  • April 8, 2025
  • 1 reply
  • 0 views
I cannot find where I would record this in my federal taxes.

1 reply

April 8, 2025

This is a claim of right repayment. 

 

If the repayment is $3,000 or less, it is a miscellaneous itemized deduction and can longer be deducted. 

 

If the repayment exceeds $3,000, you can only report it in the year you actually repaid the claim.

 

There are a couple of ways to get a tax break by reporting the repayment in the year of repayment:

 

  • You'll claim it as a simple deduction from the current year's income. This is the preferred option if you itemize your deductions

 

  • Use TurboTax Desktop to figure out the amount of tax you overpaid and take a refundable tax credit

 

  • Test both methods and choose the one that results in the lowest tax.

Please read this TurboTax Help topic for more information.

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