Defense Base Act Compensation Blog

The Modern Day DBA Casualty

Tax Time 2009 Civilian Contractor’s Overseas and Injured

Posted by defensebaseactcomp on February 1, 2010

Following are answers to our most commonly asked tax questions.

If you received monthly payments from the DBA insurance company they are not taxable.  This is no great gift, it is part of why your benefits are only figured on two thirds of your Average Weekly Wage.

If you were covered under DBA insurance in 2009 you were an employee of the company you worked for unless they misrepresented you as an employee in order to qualify for the insurance.

If your company misrepresented you as an independent contractor for tax purposes you will need to file

Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding Form SS-8

Also see Misrepresenting Employee’s as Contractors

The limit on excludable income for 2009 is  $91,400.00

Social Security and has a limit of   $102,000 for 2008      $110,100 for 2012

See Publication 15

All covered Wages are subject Medicare Taxes

Foreign Earned Income and Housing: Exclusion – Deduction

Please add any helpful experience you’ve had here.

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