How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask LADYLAWYER Your Own Question
LADYLAWYER
LADYLAWYER, Lawyer
Category: Legal
Satisfied Customers: 6536
Experience:  Civil; Family; HOA; Landlord/Tenant; Real Estate; Probate; Insurance; Immigration; Wills & Trusts
7887522
Type Your Legal Question Here...
LADYLAWYER is online now
A new question is answered every 9 seconds

If I cash a check for over 40K will that have to be reported

Customer Question

If I cash a check for over 40K will that have to be reported to the IRS by the bank?
Submitted: 7 years ago.
Category: Legal
Expert:  LADYLAWYER replied 7 years ago.

Hi,

 

What is the check for please?

Customer: replied 7 years ago.
It is a settlement check for a Workers Comp Injury.
Expert:  LADYLAWYER replied 7 years ago.

Hi,

 

Okay, thank you. Yes, the bank has a duty to report the transaction. Please see more info here: http://www.yale.edu/tax/docs/rules_def_8300.pdf If you have any more questions, I will be happy to answer them. Please accept my answer so I can receive credit for helping you. We can always continue our conversation at no additional charge. Thanks!

LADYLAWYER and other Legal Specialists are ready to help you
Expert:  LADYLAWYER replied 7 years ago.
Do you need more help? If not, please accept my answer so I can receive credit for helping you. Thanks.
Customer: replied 7 years ago.
Can you explain why this is so? Why does the IRS need this information.
Expert:  LADYLAWYER replied 7 years ago.

Hi, Sure, no problem! This law alerts the IRS to the potential for collecting taxes on this amount. However, any amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. The exemption also applies to your survivors. The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. So while your worker's comp settlement may be exempt, if it was not, the IRS would know if you claimed the money or not on your 2010 tax return. If you were supposed to claim the money and didn't, they would come after you.

Customer: replied 7 years ago.
I was charge twice for the same question and answer. Please credit back my credit card
back the 28.00 dollars you put twice on my card.
Deborah Barile