How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Arthur Rubin Your Own Question

Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Tax
Satisfied Customers: 1270
Experience:  22 years of tax preparation experience, including individual, trust, and estate returns.
13714381
Type Your Tax Question Here...
Arthur Rubin is online now
A new question is answered every 9 seconds

My wife was disabled from 2007 through 2010. Private disability

Resolved Question:

My wife was disabled from 2007 through 2010. Private disability insurance allowed us to survive. Late in 2010 Social Security paid us $51,666 (box 5 1099 amount). The private insurance compnay drew back about $37,600 of the SSD payment, $3,700 went to the law firm that represented my wife to Social Security. My rough calculation is that if I report the lump sum as a lump sum we will be responsible for about $8,000 in taxes (we managed to earn $44,000 between the two of us in 2010.
Is there some extra information published somewhere about understanding Publication 915 ,"Social Security and Equivalent . . ." I understand that there is some way to calculate tax credits for the amounts repaid to the private insurer . . . but i can for the life of me make heads or tails of how to do it for multiple years . . . Pub. 915 seems to use only a single previous year.
If this is too complicated for me to work out . . . about what would a preparer charge.
We normally file the standard exemption and deductions.
Ron Noon
Submitted: 3 years ago.
Category: Tax
Expert:  Arthur Rubin replied 3 years ago.

Arthur Rubin :

Thank you for using JustAnswer/eAnswer.

Arthur Rubin :

In addition to processing the Social Security lump sum taxation, you can claim a deduction or credit for the $37,600, as follows:

Arthur Rubin :

First, if you repaid the money to the disability company in 2010, you subtract the repaid amount attributed to 2010 from the payments before reporting it.

Arthur Rubin :

Aside for that, for each year for which you repay the insurance company:

Arthur Rubin :

If it's over $3000, you have the option of taking an itemized deduction (not subject to the 2% limit) in the year repaid, or taking a credit on the tax return for the year repaid, of the amount of tax in that year (2007-2010) due to the disability income.

Arthur Rubin :

If under $3000, you only have the option of taking an itemized deduction (subject to the 2% limit) in the year repaid.

Arthur Rubin :

The legal expenses are deductible as miscellaneous itemized deductions subject to the 2% limit in the year paid.

Arthur Rubin :

Publication 915, and the examples in publication 17 referring to the "claim of right" deduction and credit, only apply to single years, as well. You need to do the calculation for each year, and have a separate option of deduction or credit for the repayment applicable to each year. I don't know whether, if you elect the Lump Sum calculation to determine the amount of Social Security income taxable in 2010, whether the virtual amended returns for the prior years include the back social security income attributed to those years. Publication 915, in the section "Repayments More than Gross Benefits", goes over the procedure, although it seems to state that only the total repayment needs to be over $3000, rather than the repayment attributed to each year.

Customer:

So for the delay, but life intervened. I had what a cardiologist described as a "minor heart attack". and my wife (an RN) insisted that I put aside any stressors for awhile. I think i understand the answer. Thank you kindly for your time and assistance.

Arthur Rubin, Tax Preparer
Category: Tax
Satisfied Customers: 1270
Experience: 22 years of tax preparation experience, including individual, trust, and estate returns.
Arthur Rubin and other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Arthur Rubin
Arthur Rubin
Tax Professional
1270 Satisfied Customers
22 years of tax preparation experience, including individual, trust, and estate returns.