Page 2 of 2 FirstFirst 12
Results 11 to 20 of 20

Thread: American injury claims

  1. #11
    Quote Originally Posted by nonoise View Post
    The feds didn't several years ago.
    So now the Feds do tax personal injury settlements ?

  2. #12
    Senior Member Andy's Avatar
    Join Date
    Jun 2003
    Location
    Chicago IL
    Posts
    7,593
    Quote Originally Posted by Oddity View Post
    Indeed. I can't help but think it's a little dumb that I can pay no taxes and still get a $5-7,000 check from the government every year. Some years even more!! I'm the last person that needs it. It's nice, and useful, to be sure, but hardly "make or break". I guess I'm in a "cripple sweet spot" as far as tax code is concerned. Can't help but wonder how much more money the gub'ment is pissing away. Someone else earned my "refund" as income! Seems like straight up redistribution.
    The way I have my proposed 'retirement' set up will be doing similar, maybe a bit off the SSDI stuff. But do tell, those credits, is that just EIC or something else? I'd like a preview to ponder

  3. #13
    Senior Member Oddity's Avatar
    Join Date
    Oct 2008
    Location
    Virginia Beach, VA
    Posts
    2,252
    Blog Entries
    1
    Quote Originally Posted by Andy View Post
    The way I have my proposed 'retirement' set up will be doing similar, maybe a bit off the SSDI stuff. But do tell, those credits, is that just EIC or something else? I'd like a preview to ponder
    I do pay some tax on a % of my SSDI, but that reduces down to an effective rate of 0% after the typical deductions (4 kids, mortgage interest, medical, etc.). Credits are mostly child tax credits and medical. We try to spend money on whatever credits are available each year, something my wife (aka The Boss) keeps track of. Frankly, I don't do my own taxes so I'm not 100% sure. Don't feel like paying my CPA for a half hour to find out, but I'll check out my filing in a month or so and let you know. I don't income qualify for EIC, though. There's a big hold up on filing this year because the Obamacare tools don't have their shit together and none of the paperwork for deducting premiums has gone out yet! Still at least a month away, according to the folks at our plan. Ridiculous!
    A Buddhist monk walked up to the guy working behind a hot dog cart and said, "Make me one with everything."

    "Even what those with the greatest reputation for knowing it all claim to understand and defend are but opinions..." -Heraclitus

  4. #14
    Senior Member Andy's Avatar
    Join Date
    Jun 2003
    Location
    Chicago IL
    Posts
    7,593
    Thanks, gives me an idea. You want ridiculous...I cant file my state tax yet as the state's electronic filing website doesn't work this year. I guess they figure most might get a refund of some sort, so why not delay that and go dark. Gotta love broke IL.

  5. #15
    Senior Member Oddity's Avatar
    Join Date
    Oct 2008
    Location
    Virginia Beach, VA
    Posts
    2,252
    Blog Entries
    1
    Quote Originally Posted by Andy View Post
    Thanks, gives me an idea. You want ridiculous...I cant file my state tax yet as the state's electronic filing website doesn't work this year. I guess they figure most might get a refund of some sort, so why not delay that and go dark. Gotta love broke IL.
    Cool. FYI, The Boss informed me that we DO receive the EIC! Since my LTD isn't considered taxable income the only thing they use to see if we should get the EIC is the portion of SSDI which is taxable, which does income qualify for the EIC. CPA certified 100% jacked up "loop hole". Living the dream. More like "in a dream". 'Bama Phones for everyone!
    A Buddhist monk walked up to the guy working behind a hot dog cart and said, "Make me one with everything."

    "Even what those with the greatest reputation for knowing it all claim to understand and defend are but opinions..." -Heraclitus

  6. #16
    Senior Member
    Join Date
    Apr 2016
    Location
    Cincinnati, Ohio, USA
    Posts
    989
    It depends upon the settlement type as to whether it's considered regular, taxable income. Disability insurance is not taxable. Court degree awards are.
    T3-T7 complete since Sept 2015

  7. #17
    If your a 100% disabled Veteran, I believe some state's pay property tax on your primary residence.

  8. #18
    Senior Member Oddity's Avatar
    Join Date
    Oct 2008
    Location
    Virginia Beach, VA
    Posts
    2,252
    Blog Entries
    1
    Quote Originally Posted by Mize View Post
    It depends upon the settlement type as to whether it's considered regular, taxable income. Disability insurance is not taxable. Court degree awards are.
    Auto insurance claim rewards aren't taxable either. Also, Disability insurance is taxable if premiums were paid using pre-tax dollars (a lot of LTD through an employer is this kind), or if the premiums are paid entirely by your employer. SSDI is taxable, up to ~85% of it, depending on how much other income is earned.
    A Buddhist monk walked up to the guy working behind a hot dog cart and said, "Make me one with everything."

    "Even what those with the greatest reputation for knowing it all claim to understand and defend are but opinions..." -Heraclitus

  9. #19
    Senior Member lynnifer's Avatar
    Join Date
    Aug 2002
    Location
    Windsor ON Canada
    Posts
    17,988
    Friend's Canadian and quad .. her hit and run settlement (annuity with lump sum payments at certain ages) was not taxed from 1988.

    My long term disability is. How ya like that eh? LOL
    Make America Sane Again. lol

    T-11 Flaccid Paraplegic due to TM July 1985 @ age 12

  10. #20
    Senior Member Joe-MN's Avatar
    Join Date
    Sep 2009
    Location
    Twin Cities, MN , USA
    Posts
    259
    Like Oddity said, some, all, or none of your LTD may be taxable. Depends on if the premium was paid with before or after tax dollars. My employer provided LTD ins up to a % replacement (before tax dollars), I paid additional premium to get to a higher % (after tax dollars). The additional I paid for is NOT taxed, just like contributing to a Roth IRA with after tax dollars, that will not be taxed when you withdraw it (unless they change the rules).
    Better to remain silent and be thought a fool, than to speak and remove all doubt.

Similar Threads

  1. Replies: 88
    Last Post: 06-16-2011, 02:22 PM
  2. Replies: 0
    Last Post: 06-15-2004, 05:23 PM
  3. Replies: 2
    Last Post: 05-21-2003, 10:14 AM
  4. Replies: 0
    Last Post: 10-02-2001, 05:30 PM
  5. Replies: 0
    Last Post: 09-12-2001, 08:54 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •