Social Security Lump sum payoff
My wife received a lump sum payment for social security disability in December 2016. However a large portion of this had to be paid back to the insurance company that had paid her disability insurance. So the insurance company had social security take back their money out of our bank account in January of this year. My question is how do we report this so we don't have to pay taxes on the part that was repaid to the insurance company. We already paid taxes on this money in the preceding years.