I understand that lots of people who got paid in 2011 from the GCCF is now looking on the internet to see how this income should be reported to the IRS. Well here is the information that you have been looking for. First off by law the GCCF has to send you a 1099 Misc. Income post marked January 31 2012, give the mail man 14 days from that time before you get it in the mail. This 1099 Misc. Income is what the GCCF has reported to the IRS that they have paid you. This is what you have to report on your taxes under other income.
I just spoke with the GCCF this morning to confirm this, and they said anybody that has not gotten their 1099 Misc. Income letter by February 15 2012 should call in and get it resend. If you already know they are going to send this letter to the wrong address call in now and get a new one send out to the correct address.
GCCF Tax On Interim Claim Payments And Quick Payments
So the taxes are the same for any payment received from the GCCF but remember that if you have not taken a final payment yet that trial is fixing to start and you would want to get ready for this part of the show as soon as possible. This means signing up with an attorney for settlement and trial or getting your final paperwork into the GCCF for final payment. If you have gotten a Quick Pay from the GCCF you are done for now but you still have to pay taxes on it as above.
New BP Claims Evaluator
This claims evaluator is made for people that has gotten denied or low balled by the GCCF, it will give you a good idea of what your claim should be worth by answering a few questions about your BP claim. This tool you will find on top of the page its pretty cool and pretty accurate. If you need an attorney to file your claim fill out the form on the right hand side and you will be contacted today by one of our attorneys.
Time to get your BP Claims ready
For all the people that have already sign up and for the people that are still waiting to sign up its very important that you start getting all your paperwork ready and into the accountants. If you have not hear from your account but are sign up with us send me an email at jacob(at)bp-claim.com and I will get you connected again. We are getting very close now to trial 26 days, the media circus will start again probably 1 week before trial and we want to make sure all our people are ready for this.
If you are still not sign up its not to late, the form on the right goes directly to the attorneys and they will tell you what you need. If you have a claim with BP and you have not gotten paid, the GCCF days are over and the attorneys are now coming into play.
Those who have filed and received a claims payment from BP or GCCF for damages suffered as a cause of the Deepwater Horizon oil rig accident and spill are likely going to have to make sure Uncle Sam gets his share.
BP Claims Payments are Considered Income
Claims payments are considered income by the Internal Revenue Service, and as such, taxable just like any other paycheck, lottery win, or unemployment compensation. The IRS always gets their cut anytime money changes hands. For those along the Gulf Coast not accustomed to even having to file a tax return, this is going to come as quite a slap in the face.
FEMA Check where not Taxable Why Are GCCF Checks?
Many along the Gulf Coast received checks from FEMA after the Hurricane Katrina disaster. Those checks were not taxable, yet these are. What is the difference? In a nutshell, the checks being shelled out to the Deepwater Horizon victims are to replace lost income, lost means of income, and damage to businesses that once provided you with income.
It is essentially giving you the paycheck you should have had anyway, if the oil spill had not have occurred. Since that income was going to be taxable, so these claims should be taxable. The money that came from FEMA after Katrina was money to provide victims with the very essentials of life, such as a roof over their head, toiletries, medicines, and food. Those FEMA payments were not necessarily an income replacement, but rather a life replacement, if that makes any sense.
Minimize Your BP claim Check Taxes
How, then, can you minimize the damage about to be done to your income by the IRS? Well, first off, make sure you file. If you received more than around $9,000 either from your paychecks or from your BP settlement, then you need to file a tax return.
Once the Gulf Coast Claims Facility (GCCF) cuts you a claims check, they report it to the IRS anyway, so it is not like they will just forget about you. Go ahead and file and don’t risk a chance that the IRS comes after you with interest and penalties or even jail time for not filing a tax return.
Who knows – you might even end up getting some money back. Keep in mind that any damages you suffered from the Deepwater Horizon accident and spill can be deducted from what you might owe the IRS.
Any losses your business suffered can be deducted as well. Anything you paid out for cleaning up after the accident can be subtracted from what you might owe. It is a good idea to get with an accountant or a certified financial planner or a tax professional like H&R Block to make sure you do everything the right way.
As I said before, you may end up even getting more back than you would have if you had not filed. Do not be scared to file just because you do not have the money either. Even if you are flat broke and owe the IRS, they are usually very good about working with people, especially victims of accidents like this, and arranging terms that are agreeable to everyone.