UAW strike: Is strike pay taxable? Will you be in a higher bracket?
(CBS DETROIT) - As the United Auto Workers strike continues, we are just months away from the tax season.
With workers receiving strike pay, is it taxable income? Who foots the bill?
For six weeks, thousands have been on the picket line as negotiations continue. As the strike reaches new levels, it'll impact workers 2023 tax year.
"Unlike regular wages where your employers withhold federal income taxes and pay it directly to the federal government … the UAW does not," said Hillel Nadler, a law professor at Wayne State University.
Workers can expect to receive a 10-99 form from the UAW, according to Nadler. That form, along with W-2s and any other corresponding documents, would be taken to their chosen tax professional.
"Either they will have to pay in April next year during tax season, or it will reduced from refunds that they would otherwise be entitled to," Nadler said.
This week, Stellantis' Sterling Heights Plant joined countless others in the strike. Workers said that when it comes to taxes, they wonder if they will be in a higher tax bracket, especially if they receive record raises, before the end of the year.
"The more money you make, the more taxes you will pay … and just with me being here from the time I've been here, I've had a lot of taxes based on the money I've made," said LaShawn Humphrey.
For workers who braved the picket line but also picked up a side gig like driving for a rideshare service, experts said they should expect to pay more in taxes.
"They may be in a higher tax bracket than expected, and any income that exceeds that bracket, they may pay tax at a higher rate," Nadler said.
With no shortage of signs and honking horns, workers say they are in it for the long haul. Some expect the strike to continue for at least two weeks, while others believe the strike may merge with the holidays.
It's something that causes worry for some.
"[We're] stuck in survival mode right now. You have to pay for where you live. Where you eat, what you drive. I don't know about the holidays, so I would have to hope my credit lines are long enough for me to afford it," said Deangelo Benison, a Stellantis worker.