What would you like to do?

Is workmans compensation taxable?

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 .

You don't pay tax on workers compensation received by you or your survivors for job related sickness or injuries paid under a workers compensation act or workers compensation statute in the nature of a workers compensation act.
The tax exemption on your tax return does not apply to retirement plan benefits you receive based on age, length of service, or prior contributions to the plan, even though you retired because of an occupational sickness or injury.
If your employer continues to pay your regular salary or wages and requires you to turn over your workers compensation benefits you are taxed on your tax return on the overage that was paid to you by your employer.
The part of your workers compensation that reduces your social security benefits or equivalent railroad retirement benefits is considered social security benefits and may be taxable on your tax return under rules for those types of income. Accordingly, your workers compensation may be indirectly subject to tax on your tax return.

But, if your employer requires you to sign your checks over to them and continues to pay you, you will pay taxes as they will report the wages paid to you and the taxes withheld from those wages on your W-2. Some employers only supplement with accrued leave time with the employee receiving the worker's comp checks. That is the only sure way to have your WC benefit non taxable.
+ 34 others found this useful
Thanks for the feedback!
Follow

The most noticeable change between Season 3 of "Hart of Dixie" and Season 4 is that Rachel Bilson is now pregnant! How do you think Rachel's pregnancy will impact the filming of Season 4?

View Full Interview
Is workers compensation taxable income in Iowa?

Is workers compensation taxable income in Iowa?

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
Is Pennsylvania workers compensation taxable?

Is Pennsylvania workers compensation taxable?

No. Workers compensation is completely exempt from federal tax if the payments are made under a workers compensation act for injuries occurring in the course of employment. Th
Is workmans compensation taxable income in co?

Is workmans compensation taxable income in co?

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

Is workers compensation taxable in California?

Workers compensation is not classified as earned income and is not taxed in any state according to workers compensation insurance.com. Unemployment benefits are subject to f
Is workers compensation settlements taxable in Florida?

Is workers compensation settlements taxable in Florida?

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

Industrial injury compensation is this taxable?

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

Is workmens compensation taxable income?

In the state of Wisconsin, I had worker's comp from an injury at work and I was not taxed on it. I would imagine it depends on the state. Check out the IRS Publication 15A for

How do you file a workmans compensation claim?

Contact your Human Resources rep or your employer. It may Help to  have a doctors note.

Is workers compensation taxable income in PA?

  Answer     If either your employer bought the policy, or you purchased it with PRE-tax money (thru payroll deduction perhaps), then I believe disability benef

Are unemployment compensation benefits taxable in Texas?

There is no state income tax in Texas, so there is no state tax to worry about. Benefits earned in 2008 are fully taxable for federal purposes. The first $2400 of benefits

Are workmans compensation settlements taxable?

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
Is worker's compensation taxable?

Is worker's compensation taxable?

To the best of my knowledge, no is the answer. That is why you do not receive 100% of your total weekly income. As in my case, i receive 80% of my total weekly gross earnings.

In Maryland does a subcontractor need workmans compensation?

According to Entrepreneur Magazine's "Ultimate Guide to Worker's Compensation Insurance," Maryland requires Comp for all employers with 1 or more employees.   If you're ex