Loss Income Payment

Blocus

New Member
Hello folks,
I would like to know if anyone ever faced similar situation I'm facing right now.
My vehicle was hit by a State farm client in Seattle downtown, he was at fault of course because he hit me. The State farm fixed my vehicle there was no issue there. The issue now is the payment of my loss income because State farm wants to withhold 10% of my weekly income. They claimed that because they're not issuing me a 1099 form they only going to pay me my weekly income minus the 10% business taxes, gas expense.
I told them that they can't withhold any taxes from my paycheck because I pay my taxes at end of the year to IRS, not to State Farm, but they won't listen.
I'm thinking about suing their client to recover the rest of my loss income or sue State farm in small claims court if possible.

A friend of mine had a similar situation and the insurance, of the driver who hit him, fixed his vehicle and paid his full loss income.
Do anyone got a better suggestion?
 
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It doesn't seem worth your time to fight this. Based on what you wrote above it is all business expense related and you didn't incur the expenses. Gas alone is 10% of your daily income. If they said they were withholding personal taxes then that would be a major issue. Even if you are talking about $2000 in income and they are holding back $200 it's not worth your time.

Did you have a rental car during the repair time? If they did not pay for a rental, demand a daily rental amount from them. That could make up the difference.
 

Blocus

New Member
It doesn't seem worth your time to fight this. Based on what you wrote above it is all business expense related and you didn't incur the expenses. Gas alone is 10% of your daily income. If they said they were withholding personal taxes then that would be a major issue. Even if you are talking about $2000 in income and they are holding back $200 it's not worth your time.

Did you have a rental car during the repair time? If they did not pay for a rental, demand a daily rental amount from them. That could make up the difference.

They paid everything else included rental. The only issue is the 10% they want to withhold. If I'm paying that 10% to the government, I don't have any problem with that because that's how the democracy works, everyone pays his faire share and that's how we pay for public goods.
What I can not accept is when a corporation is trying to sniff my hard earn dollar.
 

Smashup

Well-Known Member
They paid everything else included rental. The only issue is the 10% they want to withhold. If I'm paying that 10% to the government, I don't have any problem with that because that's how the democracy works, everyone pays his faire share and that's how we pay for public goods.
What I can not accept is when a corporation is trying to sniff my hard earn dollar.

I don't see how they can just arbitrarily withhold 10%.

Are you their employee now?
How do they handle other self-employed victims of their dumbass drivers?
 

SKuber

Well-Known Member
Pretty simple, when they offered your settlement they figure 10 percent of those funds should have gone to taxes.

In thier findings you did not lose that 10 percent of your income as generally speaking insurance settlements are not reportable as taxable income.

It is a settlement offer. If you are not happy with the terms then don't settle and consult a lawyer. I think you will find MOST lawyers are only interested in taking cases involving personal Injury settlements.
 
They paid everything else included rental. The only issue is the 10% they want to withhold. If I'm paying that 10% to the government, I don't have any problem with that because that's how the democracy works, everyone pays his faire share and that's how we pay for public goods.
What I can not accept is when a corporation is trying to sniff my hard earn dollar.
They owe you your net loss, not your gross. 10% is a minimal reduction
 
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