Artículo Disability payments.. Disability payments.

id="en_US_2024_publink1000171934"> Disability payments. You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. If you received a lump-sum payment from the SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Claim the deduction or credit in the same way explained under Repayment of benefits received in an earlier year under Repayments More Than Gross Benefits next. Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Don’t use a worksheet in this case. If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. If you have any questions about this negative figure, contact your local SSA office or your local RRB field office . Joint return. If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5, but your spouse’s doesn’t, subtract the amount in box 5 of your form from the amount in box 5 of your spouse’s form. You do this to get your net benefits when figuring if your combined benefits are taxable. Example. Ryan and Jordan file a joint return for 2025. Ryan received Form SSA-1099 showing $3,000 in box 5. Jordan also received Form SSA-1099 and the amount in box 5 was ($500). Ryan and Jordan will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable. Repayment of benefits received in an earlier year. If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you may be able to deduct part of this negative figure that represents benefits you included in gross income in an earlier year if the figure is more than $3,000. If the figure is $3,000 or less, it is a miscellaneous itemized deduction and can no longer be deducted. Deduction exceeds $3,000. If this deduction is more than $3,000, you should figure your tax two ways. Figure your tax for 2025 with the itemized deduction included on Schedule A (Form 1040), line 16. Figure your tax for 2025 in the following steps. Figure the tax without the itemized deduction included on Schedule A (Form 1040), line 16. For each year after 1983 for which part of the negative figure represents a repayment of benefits, refigure your taxable benefits as if your total benefits for the year were reduced by that part of the negative figure. Then refigure the tax for that year. Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Subtract the result in (c) from the result in (a). Compare the tax figured in methods 1 and 2. Your tax for 2025 is the smaller of the two amounts. If method 1 results in less tax, take the itemized deduction on Schedule A (Form 1040), line 16. If method 2 results in less tax, claim a credit for the amount from step 2c above on Schedule 3 (Form 1040), line 13z. Enter “I.R.C. 1341” on the entry line. If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 16. 8. Other Income What’s New No tax on overtime. If you received overtime compensation, you may be able to claim a deduction for qualified overtime compensation. See Overtime , later. No tax on tips. If you received tips, you may be able to claim a deduction for qualified tips on your tax return. See Tips , later. Reminders Certain relief payments made to individuals affected by the East Palestine train derailment are not taxable. If you received relief payments from a government agency, Norfolk Southern Railway, or its subsidiary, insurer, agent, or a related person due to being affected by the February 3, 2023, East Palestine, Ohio, train derailment, these payments may be nontaxable. See Pub. 547 for more information. Qualified wildfire relief payments are not taxable. If you received a qualified wildfire relief payment