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<blockquote data-quote="bacha29" data-source="post: 3384117" data-attributes="member: 58386"><p>As I pointed out in the UPDATE if a taxing authority which could include states who want UC tax payed on the settlement decides to proclaim the settlement as wages which falls under the title of &quot;earned income&quot; X agrees to pick up the employer share. Now the question would be is that liability&nbsp; limited to only the employers share of FICA which would be one half (7.65%) ? What about state UC tax and local municipality earned income taxes better known in my state as &quot;wage tax&quot; and is 1% plus a annual $52.00&nbsp; Do they agree to pay that tax as well? . It would appear that you are thinking the same thing I&#039;m thinking. This thing may not be over yet. I talked to an IRS agent asking if I could go back and amend my returns for the years in question 2001-2007 pay the additional tax in the hope that my monthly benefit could be ticked up a notch or two. Flat out denied.&nbsp; I&#039;m going to report my settlement as &quot; other income&quot; pay the FIT only then wait to see what happens . Keep in mind . The total taxable combined payout to this point in both the East Coast and West Coast settlements was about 450 million. So there&#039;s a lot of FICA UC and local and somebody may decide that it&#039;s worthwhile going after.</p></blockquote><p></p>

[QUOTE="bacha29, post: 3384117, member: 58386"] As I pointed out in the UPDATE if a taxing authority which could include states who want UC tax payed on the settlement decides to proclaim the settlement as wages which falls under the title of "earned income" X agrees to pick up the employer share. Now the question would be is that liability limited to only the employers share of FICA which would be one half (7.65%) ? What about state UC tax and local municipality earned income taxes better known in my state as "wage tax" and is 1% plus a annual $52.00 Do they agree to pay that tax as well? . It would appear that you are thinking the same thing I'm thinking. This thing may not be over yet. I talked to an IRS agent asking if I could go back and amend my returns for the years in question 2001-2007 pay the additional tax in the hope that my monthly benefit could be ticked up a notch or two. Flat out denied. I'm going to report my settlement as " other income" pay the FIT only then wait to see what happens . Keep in mind . The total taxable combined payout to this point in both the East Coast and West Coast settlements was about 450 million. So there's a lot of FICA UC and local and somebody may decide that it's worthwhile going after. [/QUOTE]

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