My client repaid long term disability benefits in 2022, that were included in his income in 2021. Repayment was required because Social Security paid out benefits owed to him in 2022. He did receive a letter from the Insurance Carrier verifying these facts, he also received a form SSA-1099 for the amount he received in 2022. In researching this I am confused as to if this repayment would be a deduction or a credit (Pub 525, pg 37). Thank you!
Other Information:
Amount is over $3,000
Individual return
Not a repayment to Social Security
Client does not itemize