Question:

Why do i have to pay money back i had to pay tax's on?

by Guest57974  |  earlier

0 LIKES UnLike

i was om LTD for 2 years when i filed my tax's both times it was considered taxable income....now that i got my ssi approved they say i have to pay them my back pay from ssi and have been holding my money they're suppose to pay me since march aetna still has to pay me 160 a month for the next 21 years....

 Tags:

   Report

2 ANSWERS


  1. You purchased the disability coverage with pre-tax dollars or your employer paid the disability policy premiums therefore your disability income is taxable. When you or your employer purchased the disability policy someone chose to coordinate your disability benefit with a Social Security Disability benefit (if any). This is often done in order to keep the monthly premium affordable.

    Now that the SSD payments are approved your disability carrier is coordinating the benefit amount with the SSD payments you are receiving per the provisions of the contract.


  2. Because you can't "double dip".  That SSDI pay is retroactive.  You have a subrogation clause in your policy.  The SSDI pay is taxable, also.

    So the point is, you want to collect disability coverage from two different sources for the same time period - that would mean, you're collecting way more than you were earning as a worker.  So you have to use the public benefits to pay back the private funds for the same time period.

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.