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If you received disability payments through an employer's or insurance company's long-term disability policy and you had to repay the employer or insurance company for any retroactive SSDI disability payments, you can take an itemized deduction for all or part of the repayments. You will show this on Schedule A. Any repayment of benefits you made during 2010 must be subtracted from the gross benefits you received in 2010. It does not matter whether the repayment was for a benefit you received in 2010 or in an earlier year. Since you were required to pay back for the past 3 years you may wan to use a tax professional to complete your return to make sure you receive the correct amount of deduction.
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