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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13577
Experience:  15years with H & R Block. Divisional leader, Instructor
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i worked for visteon untill 2004 when i got laid and took early

Customer Question

i worked for visteon untill 2004 when i got laid and took early retirement. i was suppossed to get a small check and medical insurance and life insurance for the rest of my life. visteon filed bankruptcy and took our insurance away, and gave me apayoff for the insurance 4750. for two years. total 9500. they said they didn't know if it was taxable or not, but they sent me a 1099 for 4750. and they still say they don't know if its taxable or not. i feel like a was forced to sell something that i did'nt want to sell for a small fraction of what it was worth. can i find out if its taxable or not?
Submitted: 5 years ago.
Category: Tax
Expert:  Robin D. replied 5 years ago.

Robin D :

Hello and thank you for using Just Answer

Robin D :

Where on the 1099MISC did they show this Health Insurance Premium payment?

JACUSTOMER-hh8v76h3- :

the 1099 does not have my ss number on it , it just says misc income. the letter that come with it says. dear visteon settlement participant: we are the law firm that represented the iue-cwa in the negotiation with visteon of a settlement of your claims for life time retirement medical coverage. enclosed is a form 1099 that reports the first half of the settlement amount that you received from an escrow account maintainted by our firm in 2010. please note that this form does have your social security number. we anticipate that visteon will supply us your social security imformation shortly but we did not want to unreasonably delay the distribution of these form 1099's. the form 1099's we summit to the irs will have your ss number included. we are not tax counsel and we cannot give you advice on whether this income should be included on you income tax returns. we are, however, obligated to advise the internal revenue service of the amount that you have been paid. we will send you a similiar form in 2012 to reflect what you were paid in 2011.

JACUSTOMER-hh8v76h3- :

i made a mistake , it says please note that this form does NOT have your social security number. I LEFT OUT THE NOT WHEN I TYPED IT

Robin D :

A reimbursement for medical care generally is not taxable. However, it may reduce your medical expense deduction. If you receive an “advance reimbursement” for future medical expenses from your employer without regard to whether you suffered a personal injury or sickness or incurred medical expenses, that amount is included in your income, whether or not you incur uninsured medical expenses during the year. If the amount they are showing was for future health insurance premiums then you will need to include it as income.