Guest guest Posted March 11, 2011 Report Share Posted March 11, 2011 I forgot to mention that I the entire $20,000 (back award from Social Security)  that I have to pay back to the private disability company, I get the honor of paying taxes on all of it. Even though I get to keep ZERO!!!  My lawyer also gets to pay taxes on the $6700 I paid him for private disability to go through and the other lawyer who did the social security case gets to pay taxes on his social security award fee of $6,000 and I get to pay tax on that, too. That means I pay taxes on over $80,000, of which more than three quarters of that I never even see.  Anyone who has a spouse working needs to know this because you get slammed with taxes and you get to pay taxes on money you don;t get and most private disability companies make you pay back every penny you get in back pay form Social Security. Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 15, 2011 Report Share Posted March 15, 2011 , Lori Karasek wrote: > I forgot to mention that I the entire $20,000 (back award from Social Security) that I have to pay back to the private disability company, I get the honor of paying taxes on all of it. Even though I get to keep ZERO!!! Lori, My private disability subtracts my social security disability out of it and it is reduced. They made sure they got that first. Bennie Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 16, 2011 Report Share Posted March 16, 2011 I forgot to add that I was told that the money that has to be paid back from social security to the private disability is also taxed. Ugh! > Bennie wrote > My private disability subtracts my social security disability out of it and it is reduced. They made sure they got that first. Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 16, 2011 Report Share Posted March 16, 2011 Lori wrote: > Moderator's Note: Lori, you and your husband need to meet with a good certified accountant. What you have going is too complicated for tax software or a corner tax filing outfit. (now on to Lori's message!) > ---------------------- I have to pay taxes on money I can't keep! And already am going to pay in 2010 on the private disability money! Double taxes! Thank goodness the attorney got a check separately from social security for his fee! > I'm in NW Ohio. Anyone have any suggestions? Lori, You need to do this! I did not have to pay taxes on my award but it was money I lost from not being able to work. You need to check as SSI told me I do not have to pay taxes on that, but I do on private insurance. I would also call the Social Security people. I would call the local IRS offices as they are the ones taxing you and it is free advice. Also, when I had to pull my sum out to live on, I did not have to pay the 10 per cent as I met the hardship criteria. Do not use the software as my husband almost did. We called the IRS office and they told me what I had to pay and what I didn't and fill out a hardship form. My Social Security is deducted out of my private disability but when I am old enough to get my Reserves Pay, they will not deduct that. I would go straight to the IRS office and I got good advice over the phone. Bennie Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 16, 2011 Report Share Posted March 16, 2011 Lorijkarasek@... wrote: > I forgot to add that I was told that the money that has to be paid back from social security to the private disability is also taxed. Ugh! > Lori, You need to speak to the IRS, something is rotten here. I would get it from the Horses Mouth , http://www.irs.gov/faqs/faq/0,,id=199752,00.html is a link, just type in IRS and social security disability, and then IRS and private disability. The forms and information is listed there. Also after 25 months of social security disability, I had to take Medicare and pay a premium even though we had a family insurance plan and that is deducted from my Social Security. So, go figure. Talk to the IRS first and then get an accountant. Our software program did not pick up on some things . Bennie Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 16, 2011 Report Share Posted March 16, 2011 Thank you, Bennie. My husband is a self-proclaimed financial/tax guru since he got his MBA, which means he would rather give it all to the government than get any input from anyone. Filing separately would make a worse mess! Thank you for your input! Sent from my Verizon Wireless BlackBerry Bennie wrote: Lori, Talk to the IRS first and then get an accountant. Our software program did not pick up on some things . Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 16, 2011 Report Share Posted March 16, 2011 orijkarasek@... wrote: > Thank you, Bennie. My husband is a self-proclaimed financial/tax guru since he got his MBA, which means he would rather give it all to the government than get any input from anyone. Filing separately would make a worse mess! Thank you for your input! Lori, I have a MBA also, don't spread it, but the IRS is the GURU, rather we like it or not. Check with the IRS about your social security, something is weird and then you will know for sure. Oh, they also decreased my civilian disability two hundred dollars after four years as it is in the policy, boy I have to read it but they sold companies from Colonial to another so I have to make sure. I think we all need to sit and read again, the fine print. Bennie Quote Link to comment Share on other sites More sharing options...
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