Jul21720
Level 3
02-10-2021
08:16 PM
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Is a compensation for lost wages due to a car accident subject to Social Security tax? if so, how do I enter it in Pro Series basic?
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BobKamman
Level 15
02-11-2021
12:12 PM
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5 Comments 5
Jul21720
Level 3
02-11-2021
11:37 AM
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Thanks BobKamman, would that be the reason the taxpayer did not get a form 1099?
Taxpayer did receive money to pay for medical expenses and because she was out for 3 months, so; according to your message the compensation is tax free. Is there a Pub that you can refer me to?
Thanks, I appreciate your help.
qbteachmt
Level 15
02-11-2021
11:38 AM
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Your client would get a W2, if this is Lost Wages replacement. You didn't tell us who paid for this.
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"Level Up" is a gaming function, not a real life function.
Jul21720
Level 3
02-11-2021
11:45 AM
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Sorry about that, payment received from car insurance company
BobKamman
Level 15