S
srloring
Guest
My husband had 3 fingers and a portion of his hand taken off by a slicer at his job two years ago. He started receiving workmen's compensation checks within a couple months and last September we settled with the employer's insurance company out of court for a final settlment and received $28,000 in one payment. After our lawyer took his share, we ended up getting a check for $19,000.
We just got a tax document from the insurance company stating the $28000 as a misc. income which is reported to the IRS. We were unprepared and yes, a little niave in thinking that we would have to pay taxes on this amount. We are wondering what our rights are here. We paid our attorney $9000...do we have to pay taxes on that. We are confused by all and our attorney is on vacation so we need a little legal advice. Any help would be appreciated...
We live in Iowa... thanks, S. Loring
We just got a tax document from the insurance company stating the $28000 as a misc. income which is reported to the IRS. We were unprepared and yes, a little niave in thinking that we would have to pay taxes on this amount. We are wondering what our rights are here. We paid our attorney $9000...do we have to pay taxes on that. We are confused by all and our attorney is on vacation so we need a little legal advice. Any help would be appreciated...
We live in Iowa... thanks, S. Loring