OCR Text |
Show for sickness or accident, or are wages paid while you were off work due to sickness or accident, a above, you enter the total e-mount e-mount of your wage on line five of the tax return and then deduct the tax free amount on line 6. Be sure to attach a detailed statement state-ment to your tax return showing how you figured this. When you were , off what happened, if you were in th hospital, etc. Better still, get a form 2440 from the Internal Revenue Service and use it. INCOME TAX FACTS Did you receive benefit for accident acci-dent or sickness, or were your wage continued for the period that you were off work because of sicknesa or accident) If so, the amount you received because of accident or sickness, if received from an insurance company com-pany where you paid the premiums either directly or through payroll deductions, is not taxable income. The amount you received because of accident or sickness where your employer paid the premiums to the insurance company, or where your employer himself paid your wages while you were off sick, i not taxable tax-able income up to the first $100 per week you received after the first even day you were off. If you were in a hospital for any day while you were off sick, then no part of the amount you received, under $100 per week, i taxable. If you were off because of personal injuries, then the seven day waiting wait-ing period does not apply. If you have received over $ 1 00 per week, the excess over $100 per week is taxable income to you, but only if ycu did not pay the premiums prem-iums to the insuranc company, or if your employer is simply continuing continu-ing your wages. If you paid the premiums on the insurance yourself directly, or by having them withheld with-held from your paychecks, then no part of any amounts that you receive re-ceive a sickness or accident benefits bene-fits are taxable income. If you '. receive medical expense reimbursement, then you Cannot deduct a medical expenses the bills that were reimbursed. If you deducted medical bills in a prior year, and this year receive reimbursement for them, then you should include the reimbursement in your income, but only if the deduction de-duction in a prior year gave you a tax benefit. Where your W-2 slip includes payments to you which are not taxable because they are benefits |