Money/Tax advice needed!!!

[WillHin]

Ok, I've been involved in a law suit with work-comp for 5years and it finally ended a few months back. I was paid back pay from work-comp and now get my weekly check also. Everything paid to me was not taxable....I am a c-5 quad and my wife handles all my care, work-comp is now getting ready to pay her back pay for my care the last 5years and pay her monthly for my care from now on..My question is what would be the best way for work-comp to pay her the back pay without losing it all to taxes...See work-comp says they cant pay the money to me because my wife is not a licensed nurse,but they can pay it to her and she pay taxes on her income,which wont be a problem on 40k a year,but all this back pay shes going to get all at once and im worried taxes will take it all.......if anyone has any advice that might be helpfull it would be greatly appreciated...........Willie

[ginamarie]

You might want to ask your workers comp attorney and they are not sure ask if they can direct you to a competent accountant who is knowledgeable in this area.

[FamousStamps]

Maybe stick a big chunk of it in an IRA. I think if the money is supposed to be hers, then it supposed to be taxed. If it's yours and you're giving it to her, then it shouldn't be taxed.

[SCI-Nurse]

Your worker's comp attorney should be advising you on this. You have one, right?

Also, please think carefully about having your wife be your sole caregiver. Consider hiring some outside help at least part time to give her a break. It is great she has stuck with you, but give her a break and let her just be your wife, and you may find it helps to keep your marriage together.

(KLD)