Article Date:
September 2007


Word Count:
233

 

 

Wrong Setup Causes Tax on Disability Payments


Tax law is merciless. Rules are rules. You have to get the rules right, or you lose the benefits.

 

Millard Thomas got hurt on the job and qualified for total disability from his labor union. Properly structured, disability payments for an injury are not taxable.

 

Unfortunately, the union based the payments to Thomas on his age and years of service rather than on his disability. Tax law is very specific here:

 

·

Had the payments been based on the injury, the disability income would ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee