I was declared fully disabled in 2004 after a terrible auto accident and I now receive a disability check each month. For my back pay (the case went on for several years) what they did was break it up into 3 payments each 6 months apart. I've now received the two smaller payments and within the next couple days will be receiving the final (back pay) check which is by far the largest of the three. I'm now curious since this check will be larger (not huge….in the 10K range) will I need to pay taxes right off the top of that check or will I have to pay taxes on it all all?I was declared fully disabled in 2004 after a terrible auto accident and I now receive a disability check each month. For my back pay (the case went on for several years) what they did was break it up into 3 payments each 6 months apart. I've now received the two smaller payments and within the next couple days will be receiving the final (back pay) check which is by far the largest of the three. I'm now curious since this check will be larger (not huge….in the 10K range) will I need to pay taxes right off the top of that check or will I have to pay taxes on it all?
Thank you for any info you can give me.
Thank you for any info you can give me.
