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lev-tax, Tax Advisor
Category: Social Security
Satisfied Customers: 29918
Experience:  Taxes, Immigration, Labor Relations
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I've been on social security disability sense 07/01/13. I

Customer Question

I've been on social security disability sense 07/01/13. I just got awarded a settlement from workers compensation for 12682.86 less attorney fee of 1488.85, for the period between 12/28/12 till 03/29/13. Plus personal injury of 24150.00 less attorney fee of 9495.90. Do I have to report this to SSA? Will they want my disability paid back?
Submitted: 1 year ago.
Category: Social Security
Expert:  lev-tax replied 1 year ago.

You might need to report these awards to worker compensation if you do receive such benefits qs they usually claim back if any other disability benefits are awarded .

However - no need to report to the social security administration as long as these are not wages and not self-employment income.

Expert:  lev-tax replied 1 year ago.

Please be aware that both these awards are NOT taxable.

See following publication

page 19

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.

page 30

Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments).


Correspondingly - you may not deduct attorney fees because they are not related to taxable income.

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