lost wages included in settlement.

[Lloyd Hudson]

I have a client whose 9 yr old daughter received a structured settlement from a car accident. One of the items of the settlement included an amount given to her father, my client, for allocated loss wages and medicals costs during her stay in the hospital. He did not receive a 1099. After researching this income-I believe it is not taxable. So my question is: Do I disclose this information on his return by filing a 8275

or do we try to sort out wages from medical and report wages as other income?

[Jerry W]

I have a client whose 9 yr old daughter received a structured settlement from a car accident. One of the items of the settlement included an amount given to her father, my client, for allocated loss wages and medicals costs during her stay in the hospital. He did not receive a 1099. After researching this income-I believe it is not taxable. So my question is: Do I disclose this information on his return by filing a 8275

or do we try to sort out wages from medical and report wages as other income?

Lloyd,

I believe pages 31 and 32 of Pub. 525 may answer your question.

Jerry

[Pacun]

The amount for lost wages is taxable.

[Lloyd Hudson]

The amount for lost wages is taxable.

I agree, I just could not find the backup info I needed Thanks.