Does anyone know how SSDI and Workers Comp Settlement Work In Mo? I was told that once you settle with workers Comp, that you have to make sure that your lawyers put in writing that the settlement is for loss of wages, lets say i settle for $286,000 after all expenses are paid, That will Equal to a Weekly Rate of 250 a week for 22 years, Based on "life Expectancy" Or Retirement age, That Social Security wouldn't Keep my money since it it written as a loss of wage settlement and not just a plain Lump Sum,
Currently i am allowed to Keep my Social Security Check and about and additional $1,400 i get from workers comp, as long as i don't go over my 80% of my Actual Current Earning's Before Taxes, They will not take any money out of my SSDI check, So lets say i earned on the average a monthly Salary of $3,776.00 a Month what i get from SSDI and Workers Comp cant Exceed the Monthly amount of $3,020.00 Which is 80% of the $3,776.00 This is my understanding so far of how the settlement will affect me, and my SSDI Check. Does anyone know if this is true? or if it works any Different ?
If what you said is true, that would make you about 45 years old I think. How do you pay the taxes on the WC lumpsum settlement? Have you been approved already for SSDI? Is the settlement with WC complete? Curious? What kind of injury did you sustain OTJ that disabled you? I hope everything works out for you as planned and your SSDI benefits are not offset.
hi Jazz, I don't know how it works in MO.? but I can tell you how it worked for me in PA. SSDI is federal, so I'd think it's the same? I was injured on November second 1992. permanent injuries, leaving me completely paralyzed on my entire left side. my workman's comp. carrier began paying me bi-weekly checks of about $2700.00 and continued paying that amount the entire 3 years of my hospital and rehab stay. I had a third party lawsuit I'd filed and won, after being released from rehab in 1995 at all about the same time, I was approved for SSDI, my lawsuit settled for multi-million dollars, on the very day my wife and I went to my lawyer's office to sign the settlement papers there was a representative from my workman's comp. carrier there to collect from my settlement every penny they'd paid out on my claim. I had to write out checks to them totaling $1.6 million dollars right off the top of my settlement before I'd receive anything. he then informed me my workman's comp. checks would be reduced to $623.00 paid monthly instead of bi-weekly to offset my SSDI checks. which dropped me down way below the 80% of my current wages before taxes. my lawsuit settlement is paid in monthly payments (annuity) over 20 years or the rest of my life with ever is longer? my lawyers wrote my settlement up as punitive damages as that way there are no taxes to be paid, I've never settled with workman's comp. as that's not taxable either. if you settle workman's comp. for say $280,000? written as loss wages, every penny may well be taxes simply because the word wages is used? make sure with your lawyer. also a big chunk of that $280,000 which is way more than I've ever heard of them paying and I've researched it a lot. a big chunk may have to be put into a set aside account for medicare which then must be used to pay for anything involving your work injuries before medicare will pay for anything surrounding your injuries! check your state laws to see how long workman's comp. is required to pay? some states it's 250 months, some it's 500 months, in PA. it's the entire length of disability. if MO. is the same, why would you settle? make them pay as long as required, there are no taxes? my SSDI amount doesn't bring me and my wife to the amount taxes are owed per year, my W/C checks aren't taxed and my punitive damages payments are not taxable, I've not even had to file income taxes since 1993 for my 1992 wages.
please make sure with your lawyer before making the final decision to settle, you may come out way ahead?
good luck and god bless
happiness is a way of life, not a goal in life, success comes in cans not can'ts
It sounds like you had a pretty bad injury Larry. I am glad you survived it and was able to move on with your life. Good advice to Jazzmo btw to avoid having to pay taxes on the WC benefit. I am on SSDI and LTD for an illness, not an injury. The LTD is offset by the SSDI but both benefits will be tax free.