I realize you have a question about social security. My goal is to help you better understand your options.
How are you today?
The worker's compensation claim is not taxable
The receipt could impact your social security disability.
will it affect my monthly disabilty check and will there be any state capital gain taxes
There would not be any state tax either
but it could impact your disability.
what should i do to avoid any tax
Your worker's compensation and your disability payment together cannot be more than 80% of what you earned before your disability began
There is no tax on your worker's comp benefit at all
this was in a work comp accident case that caused the disability
Yes...did I answer your questions about your disability and worker's comp?
no , does that mean the amount that i would have made in the 11 years this has been going on are does it mean using my monthly income that i made when i was working
This means the monthly income you received when you were working. So, if you earned $1,000 while you were working you could only make $800 between social security and worker's compensation
this was a settlement that included lifetime medical on the injury plus a cash settlement less lawyer fees,im trying to find out if i would mess up if i took the cash settlement because i would have to pay a tax on the money
No, there is no tax on worker's compensation awards
but your saying it might give me a problem with my disabilty program if i took the money and didnt re invest it somewhere
No, when you get a monthly amount, the amount plus your social security cannot be more than 80% than what you made when you were working
Im sorry Im Still not Understanding heres an example. i have been recieving 1000.00 per month on my social security disability check per month for the last 6 years and now they finally decided to settle after 11 years and they agreed on 250,000 lump sum less my 78,000 lawyer fees which would make it a 172,000 lump sum would that money affect my monthly disabilty im already getting and would i have any state or federal tax on this money
You would have no federal or state income taxes on that amount. However, social security will apply a formula to the lump sum to calculate an equivalent monthly benefit, and they will adjust your social security so that your benefit each month was not more than 80% of what you earned prior to becoming disabled
where can i get this formula because im only 53 and i should live till at least 75 i hope
It's not published. All the social security formulas are really complex
You could visit your local office and tell them about your proposed settlement, and they could advise you exactly how it will impact your benefits
can i print the question then im done
Yes, you can print this conversation using the print function on your browser
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i will thanks
Have a great night
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