Appologies if someone already started a thread on this topic and I can't find it. I am so foggy. I need to do my taxes and am having so much trouble getting started. I have a question if someone can help me.... I finally won my SSD last June and now I have to pay taxes on all the back pay and it seems I also have to pay taxes on the money that I never saw. $5500 went directly to my attorney from SS. Another large chunk went directly to the State to pay them back for the year that I was on State disability. How come I have to claim that part that went to the State as income? That was reported on my taxes in 2006. My old taxes are buried in a storage unit and I can't access them, so I'm not sure how that money was reported in 2006. Does anyone know about the state part? Thanks for any help.