Question

Overpayment

Forum|Forum|3 years ago
April 5, 2023
1 reply
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My wife, who passed away in 2021, received a long term disability overpayment in the amount of $5727.27 How do I adjust her income? I did not recieve a 1099R. How do I include this repayment in my tax return?

Ask the Experts - Refund - April 2023

C

Cynthiad66

The leading factor that will help determine whether you must pay taxes on a long-term disability lump-sum settlement is who paid for the insurance premium. The long-term disability settlement will typically be tax-free if you paid for the premium with money that had already been taxed (such as taxable income).

What year did you receive the disability overpayment? If taxable, you will receive a form 1099 for the year it was paid.

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