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More than 70,000 cops, firefighters and other uniformed city workers will share a $140 million settlement for Social Security and Medicare taxes they overpaid, officials said yesterday. Individuals will collect anywhere from a few bucks to several thousand dollars, according to the city Law Department. In addition to the $140 million payment to workers, the city will get another $140 million for the portion of taxes it paid for the employees. Yesterday's announcement marked the end of a long-fought battle between the city and the Internal Revenue Service over taxation of payments to uniformed workers injured in the line of duty. Since 1992, the city has argued that the IRS should not be taking Social Security and Medicare taxes from "line of duty injury" payments. The settlement covers workers who received line of duty injury payments between 1989 and 2005.
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