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<blockquote data-quote="dmac1" data-source="post: 3355407" data-attributes="member: 60252">Funny how that IRS notice I referred you to earlier says that the award needs to be counted as employment income (whether as an employee or contractor doesn&#039;t matter).&nbsp; Depending on the size of the award, $6500 could be a huge or tiny percentage. As far as disability goes, they would accept the explanation that it was for previous years and not count it a work income. But again, depending on the size of your award, it could make all or part of your social security income taxable. Technically, it should be taxed, since it is income, but if it bumps you into a higher tax bracket than you were in when you were working, it is a bit unfair. And even at that, since you were never found to be an employee, paying FICA taxes on the amount is fair unless you paid the maximum possible earlier. I personally was fairly satisfied with the income I was earning, even though I was disgusted with the emloyee conditions. I had been self-employed for over a decade before I started with Fedex HD.It was nothing like the promises made at the recruiting meeting prior to the HD start-up date. The lies from those meetings and the unilateral contract changes got me upset within just a few months.Fedex should have been required to reimburse everyone for taxes on the settlement since they got away without paying any of the employment taxes at the time. Getting reimbursed for illegal deductions isn&#039;t even close to what they saved in state and federal employment taxes.</blockquote>

[QUOTE="dmac1, post: 3355407, member: 60252"] Funny how that IRS notice I referred you to earlier says that the award needs to be counted as employment income (whether as an employee or contractor doesn't matter). Depending on the size of the award, $6500 could be a huge or tiny percentage. As far as disability goes, they would accept the explanation that it was for previous years and not count it a work income. But again, depending on the size of your award, it could make all or part of your social security income taxable. Technically, it should be taxed, since it is income, but if it bumps you into a higher tax bracket than you were in when you were working, it is a bit unfair. And even at that, since you were never found to be an employee, paying FICA taxes on the amount is fair unless you paid the maximum possible earlier. I personally was fairly satisfied with the income I was earning, even though I was disgusted with the emloyee conditions. I had been self-employed for over a decade before I started with Fedex HD. It was nothing like the promises made at the recruiting meeting prior to the HD start-up date. The lies from those meetings and the unilateral contract changes got me upset within just a few months. Fedex should have been required to reimburse everyone for taxes on the settlement since they got away without paying any of the employment taxes at the time. Getting reimbursed for illegal deductions isn't even close to what they saved in state and federal employment taxes. [/QUOTE]

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