Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Is this normal?
Okay so basically I got into a car accident, I was out of work. The insurance company agreed to pay me lost wages, which was great because it was one less thing I had to worry about.
Well I just spoke to the adjuster and
1) They won't pay me gross pay, only net
2) They want to withhold some of the money they're giving me for taxes ?!
I was counting on this money and they're gonna give me less than half the money that I calculated beforehand. Why are they keeping taxes, doesn't that mean I'm gonna get taxed twice at the end of the year? I have to fight with this insurance adjuster for every penny it's ridiculous.
3 Answers
- A HunchLv 74 years agoFavorite Answer
You aren't paying taxes twice. You are getting less income but disability never pays as much as regular wages (usually 60-66%). Your taxes are being withheld and submitted to the IRS just like any other tax withholding. You will include the estimated taxes you have paid on your 1040 form, similar to the way you do for the employee taxes you pay.
- EvaLv 74 years ago
It's replacement of lost earnings so of course it has to have taxes withheld. They will issue you a W2 at the end of the year. You aren't getting taxed twice. It works just like your regular paycheck.
