Taxes Must Be Deducted From Disability Claimant's Settlement, Judge Says
HUNTINGTON, W.Va. - A West Virginia federal judge on Sept. 25 denied a disability claimant's motion to enforce a settlement without a deduction for applicable tax withholding after determining that the plan at issue and the Internal Revenue Service require that taxes be withheld from the settlement amount because the settlement clearly qualifies as replacement wages for tax purposes (Noel Jordan v. AT&T Integrated Disability Service Center Disability Plan, et al., No. 18-94, S.D. W.Va., 2019 U.S. Dist. LEXIS 164015).