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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2859
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Need to know who can help me. I received a letter from the

Customer Question

Need to know who can help me. I received a letter from the IRS Stating that I now owe $14,000.00 for tax year 2014. that year I received back pay for disability and did my taxes on Turbo tax and received a refund. Who can help me with dealing with the IRS?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: No
Submitted: 17 days ago.
Category: Tax
Expert:  Barbara replied 17 days ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Disability payments are not always taxable.

Disability paid by an insurance company for lost wages, loss of limb, loss of sight (etc.) may or may not be taxable, depending on circumstance:

  • If the premiums were paid by your employer and were not included in your taxable income, the disability is taxable.
  • If you paid the premiums out of your own pocket or with payroll deductions that came out of your after-tax income, the disability is not taxable.
  • If you and your employer jointly paid the premiums, only the disability amount covered by your employer's payments are taxable.

My best advice would be to contact a CPA or Enrolled Agent in your local area who can review your 2014 tax return and the IRS letter. The CPA/Enrolled Agent can intercede on your behalf with the IRS.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 17 days ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can further assist you.

Best regards,

Barb