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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Personal Injury Law
Satisfied Customers: 118240
Experience:  Licensed Attorney. Over 20 years experience in personal injury and law enforcement.
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My husband is receiving disability benefits due to a car

Customer Question

Ok, My husband is receiving disability benefits due to a car accident he was in about 8 years ago. However he was recently in a car accident about 7 months ago. His attorney told him that disability would decrease the amount in his disability check when he receives money from this case. When the check is received, it will have the attorney law firm name on the check, my name, and my husband's name.Now a portion goes to me, a portion goes to the attorney, and a portion goes to him. How can we get around them not having to tax his disability benefits. He is going to end up with a small amount once the check is divided up among the attorney, myself, and him
JA: Because laws vary from place to place, can you tell me what state this is in?
Customer: Florida
JA: Has anything been filed or reported?
Customer: No mam
JA: Anything else you want the lawyer to know before I connect you?
Customer: No mam
Submitted: 9 months ago.
Category: Personal Injury Law
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, two things are unavoidable, death and taxes, as the saying goes. If the benefits he will be receiving are taxable in that they come from a source that he did not pay for with after tax dollars, such as a pre tax insurance policy, then he would not be able to avoid paying taxes on the benefits. What he can do, especially if your total tax situation is where you do not pay much in taxes, is to sit with your tax accountant and fill out a W-4 form for the insurer claiming more deductions or claiming he is exempt. You need to sit with your tax accountant though to examine your tax liabilities overall, because if you claim exempt from taxes and you owe money at the end of the year you will have to pay a penalty as well which you would want to avoid.
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