I believe that you found the answer you were looking for in response to a similar question by a different expert.
My only concern with that answer, is that, while I sincerely ***** ***** your situation, the problem with that answer is that it presumes that you qualify as "totally & permanently disabled" when in fact, in your own words,
" I really am not permently (sic) disabled." So that said, if you were to follow that advice, and you were subject to audit examination two to three years from now, not only would you have to pay income tax on that $25,000., but you would be subject to all kinds of penalties and interest which could easily add another 50% of the tax to your tax bill. You can't just claim permanent disability without the medical diagnosis to back it up. I think you know that, so I don't want you to be misled otherwise. Please understand that "Long-Term Disability Status" for insurance purposes is not the same as "Permanent & Total Disability" for Social Security or income tax purposes. I only want you to have all the facts and circumstances so that you may make an informed decision.
Finally, since you are financially hard-pressed at the moment, you should know that should you owe taxes in excess of what you can reasonably afford to pay, working out a extended payment arrangement with the IRS is pretty much automatic these days; in fact, depending upon the amount, it can even be done online without direct person to person communication with the IRS.