Here's a link to the form i received from SSA https://imgur.com/a/GTfo4th
to make along story short i had been on workmans comp for roughly 5 years and got approived for SSDi in 2025, so none of these back monies were ever paid to me since workmans comp is tax free , and i never saw this money as its offset by workmans comp . so my coa says i owe 8 grand as a result of this, but he wants me to contact my lawyer who handled my workmans comp case as he and his staff only see , Box 5 as something they use, even though i never saw any of that money from social security, So i have several questions.
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are any of the items in the box 3 description, to be deducted from box 5?
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is there some other way to file this so it isnt trying to make me pay taxes on 90k i never got?
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whats the actual tax code or way you would file this…
( any help is appreciated)
if i have to eat 8 grand i have to go on a payment plan as obviously im on SSDI.
any help you give i will pass on to my CPA.
Thank you in advance!
okay Third time now because i need more info, and you seem like a great place to help so far! , i gotta try this again for some more help from you knowledgeable people, because my cpa and his staff are unaware and confused as to what they should do on this! PLEASE HELP!
byu/Itsmylife4real intax
Posted by Itsmylife4real
1 Comment
Yes, the full 90k is taxable.
No, the offsets and attorney fees are not deductible. but the Medicare part B could be a medical itemized deduction, and the fed income tax withheld is a credit
What you need to look into is the lump-sum election for SSDI back payments – you recalculate the 2021 – 2024 taxes paid as if those payments were received in those years. If your income was lower in those years it may save on the tax due.