Worksafe BC Payments

KLD · Post by **KLD** » Thu Dec 12, 2013 7:41 pm

This question is not related to a U.S. matter, but I hope you will answer it for me in any case. My granddaughter has received a lump-sum settlement of approximately $38,000 from Worksafe BC as compensation for injuries sustained on the job. She has asked me two questions about this, and I would appreciate your advice before I respond to her.

1. Is this lump-sum payment subject to income tax?

2. Please also confirm for me my understanding that the monthly payments she received before the settlement was reached must be declared as total income but are then deducted to calculate taxable income.

Thank you so much.

nelsona · Post by **nelsona** » Fri Dec 13, 2013 10:55 am

This information is easily found in tha tax buide for BC residents.

KLD · Post by **KLD** » Fri Dec 13, 2013 1:48 pm

If I had a copy of the BC tax guide, I wouldn't have had to ask you. I do not have one, and it is not yet available at the post office where I usually pick one up.

nelsona · Post by **nelsona** » Fri Dec 13, 2013 2:57 pm

The internet, old chum, is a wonderful thing. You said your self this wasn't a cross-border issue, so....

KLD · Post by **KLD** » Fri Dec 13, 2013 3:47 pm

I did check the internet and read that monthly payments are not taxable, but I could not find any information about a lump-sum payment, which is why I asked you. You do realize, I am sure, that you could have simply answered my question in much less time than you have spent on your sarcastic responses.

nelsona · Post by **nelsona** » Fri Dec 13, 2013 3:58 pm

Actually, no, I would have had to do research. On a topic that is not part of this forum, you said so yourself. I could give you an answer off the top of my head (which would be that these payments are NOT taxable), but your grandchild deserves better than this, no? i hope you are able to find this information for her. I don't have it.

You may see from my thousands of posts that I'm not stingy with what I know.

No sarcasm intended. Just hoping to point you in the right direction.

All the best.

nelsona · Post by **nelsona** » Fri Dec 13, 2013 4:00 pm

Sorry for the "old chum" reference, granny!

KLD · Post by **KLD** » Fri Dec 13, 2013 4:25 pm

Well, thank you for your opinion. I will, of course, confirm it before passing the information on to my granddaughter.