What would you like to do?

Do you claim workman's comp on your income taxes?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Workers comp payments should be reported to you via a form 1099 which is also furnished to IRS. If payments are reimbursements for medical treatment and or travel expenses for medical treatment then the answer is no. However, if the workers comp payments are for lost wages or a lump sum settlement for permanent injury then yes, you will need to report these payments to IRS and they are to be included in taxable income for the year they are paid. Remember that IRS is furnished with the total amount paid to you by the Workers Comp agency.

According to the IRS publications under Workman's Compensation:

Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. The exemption also applies to your survivors. The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury.If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. For a discussion of the taxability of these benefits, see Other Income under Miscellaneous Income, later.Return to work. If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages.

Disability pension. If your disability pension is paid under a statute that provides benefits only to employees with service-connected disabilities, part of it may be workers' compensation. That part is exempt from tax. The rest of your pension, based on years of service, is taxable as pension or annuity income. If you die, the part of your survivors' benefit that is a continuation of the workers' compensation is exempt from tax.
86 people found this useful
Thanks for the feedback!

How do you start a workman's comp claim?

  Answer     Workman's Compensation Insurance is governed by state laws. Each state has it's own procedures for applying and being qualified for a compensatory or

Who do you call if a workman's comp claim is not being paid?

  First off I do not understand why no one that has a workers comp claim doesn't not go get a comp lawyer. workers comp pays for the comp lawyer. I would call the insuranc

How does a workman's comp claim work if the employee has no health insurance?

  Not having health insurance will not effect the Worker's Comp claim as long as the claim is directly related to an on the job injury.   Worker's Comp is designed to h

Can you make income while receiving workman's comp?

Not legally Certainly. WC has two components: 100% coverage of med expenses for workplace injury and insurance benefits that pay for lost work time if incapacitated from doin

Can you file taxes even if your income is WORKMAN'S COMP and you have 4 dependents?

Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute i

Can you claim workman's comp for stress?

If you are able to prove that undue stress was caused by your job then you may be able to make a workman's compensation claim. This is not what workman's compensation insuranc