I’m trying to better understand the tax implications for the backpay from a long term disability claim (not SSDI). The insurance company closed my claim but I appealed and won so they are reinstating my claim and giving me the back payment. I got a W-2 for past payments when the claim was open for a few months in 2024. I’m waiting for my lawyer to tell me if I will be getting a W-2 or 1099 from the insurance company for this year, but I’m wondering which one is better when the money is coming from a disabilty insurance company? Also, does it make a difference if the money goes to my lawyer first or comes to me directly? TIA!
Posted by BabbleMabble