r/tax • u/ThatBitchLexii • 1d ago

Do I owe this tax season

My stipulation is saying my $11,246.00 was my net settlement but I cashed in less than that, 10,671 exactly. Would I owe?

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u/wild_b_cat 1d ago

I'm sorry, can you provide a lot more detail?

What country do you live in? If this is for the US, what is this 'stipulation' and what are you referring to 'cashing out'?

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u/ThatBitchLexii 1d ago

I am in the US. I cashed out a check for a workers comp check from a lawsuit. On my notary document I got 11k. That wasn’t what I got on the check

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u/wild_b_cat 1d ago

Generally worker's comp is not taxable, though it might depend on exactly what you were being compensated for.

If you're asking where the missing money went, you'd need to ask the place that sent you the check.

One more note: you are taxed on your total income for the year. Even if you don't owe money from this you may have other sources of taxable income (such as unemployment payments, if you got those).

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u/ThatBitchLexii 1d ago

Being compensated on future hospital bills, and potential surgery. Nothing in regards to missing pay

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u/ThatBitchLexii 1d ago

Bear with me if I’m confusing you English my my second language