[alt1268]

I have found that there is a loop hole in filing taxes when you are on wc and receiving ssdi. Social secutiry puts on their 1098 (or what ever form) that you could possibly make a certain amount. Thus you have to pay taxes on that amount of money. (example: I earned 2K from Ssdi, but another 18K was added to my tax form for possible wages) I had to pay almost 5K in taxes.

I do not understand this, if you have experienced this or know the best way to resolve this please let me know.

[LIT LOVE]

Are you filing single? WC income is not taxable. Therefore, if your only taxable income is SSDI, you should owe no income taxes. Did a CPA advise you?

[alt1268]

Yes, I had a cpa. He said he had never experienced this and that I should contact my senator. (which I have done) but to no avail have I gotten a response.

I filed married. Unbelievable isn't it?

Originally Posted by LIT LOVE

Are you filing single? WC income is not taxable. Therefore, if your only taxable income is SSDI, you should owe no income taxes. Did a CPA advise you?

[echoes long ago]

i would consult with another accountant.

[LIT LOVE]

The filing married was why your income was taxed I believe. In theory, SSDI isn't taxed if it's your only income, but it is taxable. So, with your hubbie's income, it pushed you into a higher tax bracket, and was therefore taxable.

Where was the WC income entered on your return? I think this was maybe an error by your tax preparer, or maybe it didn't make a difference. When were you approved btw? Did you receive significant backpay?

[LIT LOVE]

http://www.irs.gov/publications/p525...link1000229331

[alt1268]

SS said that if I wasn't recieving WC, that I would have received 18k more, thus I have to pay taxes on it. I wrote my senator, but you know how that is. I will probably never hear a word.

This is crap.

[LIT LOVE]

That exception is on the link I provided.

You should still be clearing the same amount as when you were working... ?

[Janke]

Originally Posted by alt1268

SS said that if I wasn't recieving WC, that I would have received 18k more, thus I have to pay taxes on it. I wrote my senator, but you know how that is. I will probably never hear a word.

This is crap.

There is law that states you cannot get more than 80% of your average current earnings for the same month from both worker's comp or public disability benefits and Social Security disability. So there is an offset of Social Security if you received worker's comp or a worker's comp settlement for the same months. That may be the reason for the $18,000 offset. But that offset amount is not income to you.

And I agree with other posters about your tax preparer. Doesn't sound right to me either. But none of us have access to your tax records so we are just guessing.

[LIT LOVE]

It should only be the offset that is recorded as WC income, not all your WC income, if I'm understanding it correctly. Did the tax preparer record all of it?