Do I have to pay on a Social Security settlement?

[Alice S. Fuzzybutt]

CRAP! I meant Do I have to pay TAXES on a Social Security settlement?

I wasn't able to work for 2 1/2 years and, for those who know, getting Social Security ISN'T easy.

I had to get a job when I ran out of money. I had my hearing in front of a judge in March 2008. Within five days I got an answer back. I was a little scared to read it. I had gotten a settlement. About $5700 went to my lawyer. A lot went towards bills I had built up.

The rest is in savings and I'm trying to add to it little by little.

Does anyone know the answer to this?

[Death Metal Moe]

I would say yes. You have to pay taxes on disability and unemployment, so I'd say a Social Security settlement is no different. I'm surprised there wasn't a box you could have checked to have them take them out as they wrote the check.

Of course, get the real answer from someone qualified but the government sucks, so I'd guess yes.

[Devo37]

the US tax system is ridiculous! Social Security money IS tax money (an arguably unconstitutional tax, btw). Then you have to pay more taxes on it if you get some sort of settlement?!? then, when you go to the store to buy something, you pay more taxes on money that was already taxed twice.

then, if the person who owns the store tries to give the money away, whoever it's given to now has to pay a 50% gift tax on the same money that's already been taxed 3 times!!!

The 'gift tax' is the absolute worst. imagine if you had a birthday party, and one of your guests demanded (under threat of prison) that you give them half of your gifts! that friend is the US government.

There's no end to it! it's absurd!!! :wallbash::furious:

[Alice S. Fuzzybutt]

Sigh-- I guess I'm fucked. :furious:

And what chaps my ass is that I put a small chunk of it into my IRA account last spring. Now POOF! It's gone! I can kick myself for not putting it in a CD or something safe. At least I'd still have it. :wallbash:

[alabamatrucker]

I was off work like 2 years ago . I had to have rods and plates put on my spine due to a bad back injury. I couldnt work for one year. After that i immediately went back to work. While i was off work i filed for temporary disability so i could get the years worth of backpay from social security. About 3-4 months after i filed they sent me a rejection letter. Long story short. I hired a jew (lawyer) and after a few years and finally getting a hearing they approved it. Im waiting on my check right now. Im happy but Jesus! It took like 3-years to get back pay from where i was off work. Anyway our government is just silly.

AT

[sgchargers]

Well upon this issue (http://www.chargerschina.com/) , I do not think there will be anyone who disagree with what you said in the above. I do gain a lot from what you say.

[boosterp]

If it is not SSDI then yes you do. The only non-taxable income is military disability pay and SSDI. I have delt with both and get to file a big fat 0 on next year's tax statement.