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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I recieved retroactive disability money in 2008 from the IBEW,

Resolved Question:

I recieved retroactive disability money in 2008 from the IBEW, The lump sum monies went back to 2001-2008 and was from three diferrent funds all part of the union. Two where disability funds and one was my pension. I refiled my taxes from 2002 on and broke down the amounts that were paid per year as stated within the letters from the three funds, but they did not break it down on the 1099's. two people i've spoken with at the IRS stated I did this correctly and two stated I can not do this. What is the truth? can I redue the 1040's from 2002-2008 or is the monies taxable all in 2008?
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello nautibuoy,


Disability payments that you receive from a private plan or an employer plan must be reported in the year you receive them, even if you receive a lump sum payment that covered prior years. You cannot amend prior year returns to spread out the payments over the years they actually pertain to.


The only time that you can claim a tax credit for lump sum diability payments made in one year is if you receive a lump sum disability payment from Social Security. In that case you may go back and recalculate what your taxes would have been in prior years, and then claim the difference as a tax credit on your current year return. But this does not apply in the case of benefits you received from your union.


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Thank you nautibuoy



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