When you receive a settlement from ICBC, even if it is partly for past wage loss, you do not have to pay any taxes. If you are receiving ICBC Part 7 disability benefits, you do not have to pay taxes on that amount either. Why not? Firstly, when ICBC calculates any lost wages attributable to the car accident they reduce the amount owing based on the taxes you would have paid if you had received that income. In other words, they will reduce the amount owing in wages by your appropriate tax bracket. This is done before the settlement of the claim… To read the complete article.
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