Is Social Security Disability Back Pay Taxable?

Posted by Stacy Thompson on Oct 23, 2018 8:59:22 AM

 

Most applications for Social Security Disability benefits are not immediately approved, and applicants may wait for two years for a final decision.

Even after approval, the backlog of cases in nearly every local Social Security Administration office means that some recipients don't receive their first payments until months or even a year after approval.

The upside to this unfortunate reality is that Social Security Disability benefits include back pay for most or all of that time spent waiting, in the form of a single lump sum. This sum can be substantial, depending on the amount of benefits approved.

Individuals who have received 'lump sum payments' in other situations have been dismayed to learn that their payments were taxed at a higher rate than they expected, or threw off their 'Annual Income' for the year and raised their tax bracket.

This may make the prospect of receiving a similar lump sum from the Social Security Administration a bit more stressful than it would be otherwise.

Is Social Security Disability back pay taxable?

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Topics: Social Security Disability

What is Subrogation in Workers' Compensation?

Posted by Allison Sullivan on Oct 8, 2018 1:59:34 PM

Although worker's compensation is the exclusive remedy against an injured worker's employer, there are some cases in which the injured worker can also pursue a claim against the at-fault. 

This means that the injured worker may be able to pursue a recovery from both workers' compensation and the at-fault third party. 

There is some overlap in the benefits that an injured worker can collect from workers' compensation and the at-fault, which means that the injured worker may recover twice for the same injury.  To prevent this from happening, the South Carolina Workers' Compensation Act provides that the workers' compensation provider has a right of "subrogation" and get paid back for the benefits it paid from any liability recovery from the at-fault third party.

What is subrogation in Workers' Compensation? How does the right to recovery work in these situations? Let's take a closer look.

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Topics: Worker's Compensation