My husband has been out of work due to an accident for 2 1/2 yrs. He has been receiving LTD income from his employer's insurance company. We filed for SS Disability but it takes forever as you know. Anyhow, we received a check FEb 2006 that was backpay for most of 2005 thru Feb 2006. That was it. The check was over19,000.00. We had to turn around and write a check to the insurance company to reimburse them for this amount. So, my questions is the SSA-1099 that I received for the
19,000. When I submit this on my Turbo Tax it reduces my refund by alot. I cannot understand why I have to pay tax on something that we did not keep. I had income and we file joint so the system says it's taxable. All this did was run through our names and we did not keep it. But we pay taxes? I asked around and I'm told that we don't have to pay tax on disability income. Is this correct? Maybe I put something wrong in Turbo Tax? I don't want to leave it off and get in trouble but financially, we need our refund.
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