ETax847 Posted September 11, 2015 Report Share Posted September 11, 2015 A client's child inherited her deceased spouse's workman's comp claim. Settlement came to the child. Will this money be taxed to the child, and if so, will it be at the parent's tax rate? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted September 11, 2015 Report Share Posted September 11, 2015 Was it not settled while the estate was still open? Was this a personal injury lawsuit? Is some of the money for back wages?If it's taxable, it will be at the child's rates. Kiddie tax is just for investment income. 1 Quote Link to comment Share on other sites More sharing options...
SaraEA Posted September 12, 2015 Report Share Posted September 12, 2015 Income retains the same character to the beneficiary as it would have been to the deceased. Worker's comp would not be taxable to the parent and therefore is not taxable to whomever receives it. 4 Quote Link to comment Share on other sites More sharing options...
ETax847 Posted September 18, 2015 Author Report Share Posted September 18, 2015 Thanks Sara! Quote Link to comment Share on other sites More sharing options...
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