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Old 04-05-2018, 04:17 PM
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Can I deduct/credit in 2017 taxes if repayment was made in 2018?

Hello,

I had a lumpsum SSD check sent at the end of 2017. It is reported as income. I had to repay the entire lumpsum to my private disability insurance. This occurred in early 2018. How can I report the repayment so I'm not hit with huge taxes in 2017?

Thank you!



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Old 04-05-2018, 08:29 PM
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Join Date: Oct 2010
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So as you said you received the taxable SSD check at the end of 2017 and paid back in 2018; actually as a cash method user, you had to report the SSD income on your 2017 return however as you said you paid it back in 2018.So in this case, since you already filed your 2017 federal tax return and then discover a mistake , you need to fix errors by filing 2017 1040X; you had to report your 2017 return to report the SSD income on your amended 2017 return and of course (most TPs use cash method),since you owe additional taxes with Form 1040X for 2017, you need to file it and pay the tax as soon as possible to minimize interest and penalties.
Also since you paid it back in 2018 you also need to file 2018 1040X for refund. For your refund, Generally, you must file Form 1040X for 2018 return within three years from the date you filed your original tax return or within two years of the date you paid the tax, whichever is later



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Old 04-05-2018, 10:34 PM
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Join Date: Apr 2018
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Thank you for your response!

I actually haven?t submitted my 2017 taxes yet. I?m looking for any way to avoid paying the taxes and having to wait a year for reimbursement.

Can I indicate on 2017 taxes that I held the money in a speedster account and repaid it?

If not, can I apply for a refund at end of first quarter of 2018?

Thank you!



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