Yes, payments from SickBank is taxable income.

No, SickBank will not withhold any taxes on claims payments.

You the taxpayer are responsible for filing and reporting all taxable income. SickBank will provide a 1099misc form at the end of the tax year to ensure proper reporting of income. The forms will be downloadable from the website under your account. These forms will be uploaded to the Internal Revenue Service as required by law.

The law requires all income to be reported by both the payor and payee. You as the taxpayer are required to report all income and the 1099 is proof of that income.