I worked for 6 weeks this year and had a stroke which left me unable to return to work.
Initially, was thinking would go back to work, so took 30 days paid vacation and attended physical therapy. Then realized I would not be able to return due to residual effects of the stroke. I am 64 and turn 65 in 4-2023. Filed for Soc. Sec and started receiving $2,100.00 in benefits in Jun 2022. When speaking to Soc. Sec office they said taxes would not be taken out this year and to consider a W-4 for next year after receiving a full year of benefits. That probably my income this year would be low enough that wouldn't have to pay taxes. Am also pending Soc. Sec. disability claim which is about 40% completed at this point.
However, I was also paying for commercial insurance benefits with my employer. I had short-term disability and long-term disability insurance as well as critical event illness insurance. We have received about $3000.00 / month from short-term insurance benefits ending in early 8-2022. We have also received a lump-sum of $30,000.00 for the critical illness insurance. Long-Term disability claim is under review at this time. My wife is retired and receives a Soc. Sec. of just under $1000.00 / month. We have no other income at this point. Expecting to run out of funds in Sept. or Oct. unless long-term benefits start.
Considering our income, Soc. Sec. and those benefits we've received up to now, are we expected to pay taxes on those $30,000.00 for critical illness insurance we received. Are we expected to pay taxes on the $3000.00 / month we receive from short-term disability? What about long-term $$$ benefits "if" we qualify for those?
In prior years our our income was in the 80K range. We have a two 401Ks but deferred withdrawals until we stabilize our income and expenses to have a better understanding.
Thank you in advance for all your help.
