Lloyd Hudson Posted February 8, 2010 Report Share Posted February 8, 2010 I have a client whose 9 yr old daughter received a structured settlement from a car accident. One of the items of the settlement included an amount given to her father, my client, for allocated loss wages and medicals costs during her stay in the hospital. He did not receive a 1099. After researching this income-I believe it is not taxable. So my question is: Do I disclose this information on his return by filing a 8275 or do we try to sort out wages from medical and report wages as other income? Quote Link to comment Share on other sites More sharing options...
Jerry W Posted February 8, 2010 Report Share Posted February 8, 2010 I have a client whose 9 yr old daughter received a structured settlement from a car accident. One of the items of the settlement included an amount given to her father, my client, for allocated loss wages and medicals costs during her stay in the hospital. He did not receive a 1099. After researching this income-I believe it is not taxable. So my question is: Do I disclose this information on his return by filing a 8275 or do we try to sort out wages from medical and report wages as other income? Lloyd, I believe pages 31 and 32 of Pub. 525 may answer your question. Jerry Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 8, 2010 Report Share Posted February 8, 2010 The amount for lost wages is taxable. Quote Link to comment Share on other sites More sharing options...
Lloyd Hudson Posted February 8, 2010 Author Report Share Posted February 8, 2010 The amount for lost wages is taxable. I agree, I just could not find the backup info I needed Thanks. Quote Link to comment Share on other sites More sharing options...
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