I have an income tax question.?
I am a public employee (Firefighter) that was injured on the job and was on worker's comp. for 4 months in 2005. My employer (the City) continued to pay me my regular wage with all taxes taken out. (The City is then reimbursed by worker's comp.) My W-2 shows my full pay for the year, even though 4 months was on worker's comp. and therefore untaxable. My question is how do I file my taxes correctly? I have a letter from the City with the amount I was paid while on worker's comp. Which forms do I need? I normally do my own taxes with the help of a computer program. Should I get an accountant for this one? Should I use a commercial tax preparation service? Any help would be greatly appreciated. By the way, I am now back to work. Thanks for the concern.
Public Comments
- It sounds as if the city is self insured. Workers Compensation generally would pay you and not the city. If wages were paid by your employer (rather than workers compensation) and it seems they were as you were paid your regular wage less taxes, you could file with the total as wages. You are correct that workers compensation benefits are not taxable. However as workers compensation methods vary from state to state it would be best for you to consult a tax preparer. I suggest that you choose someone who is a Certified Public Accountant (CPA) or an enrolled agent (someone the IRS recognizes as being qualified to prepare complex tax returns). Since you're a fire fighter you may want to see if the union recommends anyone that way you would be sure that they have handled the problem before. Glad you're back to work protecting us and our property, thanks for doing a very important job! I have added a link about enrolled agents below.
- Hey, Fireguy, Interesting question, thanks for holding it open for me. I hope you post your results when you resolve this. I called a friend who is a city councilmember in the San Diego area. He said to document your problem and submit a request, in person, for a corrected W-2 to your payroll department. He said that in his city, El Cajon, that if you do not recieve COMPLETE cooperation, he would welcome your call and help you solve your problem. He is certain your city council will feel the same. It is possible his concern is rooted in a deep concern for your overall welfare and well being. But, if not, it is likely his reason that under this fact pattern the city paid too much employer taxes! For example, if your four months were about 12,000, his city paid about $918 too much! During the 4 months you did not work, the city does not owe the tax. If you do not correct the situation, they can not recover their overpayment. I hope this sounds clear from the city council point of view. Of course, without a corrected W-2, a tax professional can determine, as you likely could, the correct amounts of other taxes and withholdings, with the understanding that your gross pay is overstated by the 4 months of Workers Comp. But, those amounts will all be different than what is on your W-2 now. The FICA, and other taxes you already paid, are overstated on your current W-2. You can always call a professional and ask their opinion before committing them to your return. Obviously, with a corrected W-2, you can easily handle your own and save paying anyone else a fee. Please let me know if I can help further. I would like to know that you continued to handle your tax forms and paid the lowest possible tax. Good Luck. PS I am a volunteer for my local fire department north of San Vicente, Baja, Mexico. Our ´new´ engine is a 1961 model that we are very grateful for the donation from the states. 500 gallons!! Have you ever ridden on the ´hang onto the back´ type? LOL You should see us!!
- I don't know the correct answer but I hope you find it. By the way, firemen are smoking FN hot. Yowsa.
