The lost wages payment is for the time that I was not able to work, not for any injuries. The insurance company is claiming that lost wages are not taxable and they will not report the amount they pay me to the IRS. However, they requested my 2016 tax return so they can calculate the amount of taxes I would have paid and pay me the difference. Doesn't seem right. Can anyone confirm/clarify?
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An insurance settlement for lost wages is taxable according to the IRS. The following is an IRS publication that confirms this https://www.irs.gov/pub/irs-pdf/p4345.pdf
I don't know why they requested a copy of your tax return though, except to confirm your income with Uber in order to calculate a payout of your lost income.
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