I now get Social Security and Workman's Comp. Workman's Comp wants to make a settlement. Do I take all they offer or take a structured settlement

November 24, 2007

Posted by LifesaPretzel

( 1 rating )

Workers’ compensation and other public disability benefits may reduce your Social Security benefits.

If you receive workers’ compensation or other public disability benefits and Social Security disability benefits, the total amount of these benefits cannot exceed 80 percent of your average current earnings before you became disabled.

In order to advise which option to chose you'll need to provide more details. What is the offer? What are the details of the structured settlement?

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November 24, 2007

Posted by chris-lott

( 1 rating )

In most cases a taxpayer can exclude workers' compensation from his or her gross income but may be required to include Social Security. Be sure to ask this question with your adviser. if you provide additional details as requested below a more accurate answer can be provided.

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April 10, 2008

Posted by knor208

( 1 rating )

Taxes hould only be a small part of your reason for settling. I would hardly ever recommend a structured settlement. You can invest the money and do better than you would from a structured settlement. You would need to know what they are offering you, then use the rate of inflation, the average return in the market around 7-9% run the numbers and see which is better.

However yu need to be honest with yourself. If you worry that you will spend the money if you take lump sum settlement then you need to look at a structured settlement. Many time people underestimate how long theiir life expectancy is.

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