I was approved for SSDI after a multi-year wait. I have been on Federal (FERS) disability retirement for several years which requires an offset for SSDI benefits. So I will be owing back a large portion of the FERS benefits upon which I have already paid tax. Meanwhile, I have received a large lump sum for SSDI back payments. I have read the laws pertaining to repayment of benefits received in prior years, but still am unsure whether it makes sense to repay the amount due over time or in a single year. I have the choice of spreading it out (interest free) over multiple years or repaying it all at once. I am assuming that the negative aspect of spreading it out over time would be that there would be no compensating debit to offset the large lump sum received for SSDI back pay this year. Am I missing anything, or is there anything else I should be considering prior to deciding on a repayment schedule? My effective tax rate is around 13% and the bulk of my SSDI is likely taxable due to other household income. Thanks for any feedback.
(First time posting; please move my post if I've posted in the wrong place. Thanks.)