Welcome New User! ( Create Account | Sign In )

How WebAnswers Works|Become an Expert|FAQs|Advanced Search

Maximize

You are here: Home Categories Taxes 1099 Forms Are taxes owed from income received from disabilit...

Previous | Next

Question

Submitted 292 days ago...

realtygirl1

Beginner (58)

Are taxes owed from income received from disability lawsuit settlement?

I received a 1.5 million dollar settlement from a disability insurance company lawsuit that settled out of court. I was told my settlement would NOT be taxed. I did not have to pay any taxes on my disability payments for the past 12 years because this was a private policy. The insurance company terminated my benefits and I sued and they settled out of court. I was just asking for my benefits to be reinstated. The attorneys took $600,000 so I received $900,000. I just received a 1099 form reporting the 1.5 million. What should I do?
I called the IRS prior to agreeing to a settlement amount and was told I would not be taxed on the money since it was considered non-taxed disability. Do I have to file a return since I received this 1099? I need help. Thanks.

Share | Abuse

Answers

Answer 1 / 1

Submitted 226 days ago...

pattycats15

New User (1)

I see you don't have any answers yet and I'm looking for the same answer. The same thing happened to me last year. I'm wondering if your attorney & mine are the same as he was working on a case like mine and was referring to one that sounds exactly like yours. ANYWAY, I need the same answer my LTD was Prudential and they did exactly the same to me AND they also sent me a 1099-MISC for the entire amount (what was paid directly to my attorney that I didn't receive). I pray someone will answer this question. Good luck to both of us. The 15th is almost upon us.

Share | Link | Abuse

Answer This Question Now

If your Answer is chosen as the “accepted” answer, you will earn ongoing royalties on this thread.
Simply type your Answer in the box below and post your answer.

Learn more about how WebAnswers.com works

Related Questions

Can you determine where your taxes go?

If taxes go towards something you are morally opposed to like the war or animal testing, can...

View Question

Can i get a copy of my taxes from last year?

I lost my taxes from last year, how can i request a copy?

View Question

Do you get your tax return faster if you file your taxes with a tax service online?

I want to use my tax return to go to cancun for spring break next year. do you get your return...

View Question

Taxes

I was just wondering how much money a single person can make before they have to pay in i...

View Question

When filing taxes and claiming dependences, do you only get credit for 2 if you claim 3?

I have 3 children, but i was told that when you file taxes you can only get credit for 2 children,...

View Question

Married with dual nationalities and us income taxes.

I am an american citizen. i work in alaska seasonally. i still need to file 2006 taxes....

View Question

Winner of first survivor -- name rich i think? what happend to him with taxes . . .

The first survivor show a guy name rich won the $1million dollars, however he did not claim...

View Question

Income from life insurance

My son recently passed away and i am the beneficiary for his life insurance policies. do...

View Question

Exempt

I have a question if you claim exempt on your taxes can you still get money back? i have two...

View Question

Is there a best way to file my taxes in 2008?

My wife and i were married in march of 07. she has been out of work since may of 2007. i will...

View Question