Is my workers’ compensation taxable?
It's that time of year that everyone hates, yes it is tax season. I am frequently asked the question, "Is my workers compensation taxable?" The answer is no. There is no federal or state income tax applied to the weekly receipt of the workers’ compensation check. In addition lump sum settlements in workers’ compensation are not subject to taxation. You will not receive any tax notification documents and it is not necessary to include worker's compensation as income on your return. Nevertheless if you were on Social Security Disability and Workers’ Compensation simultaneously, it may trigger a tax notification on the Social Security Disability income. This is a more complicated issue dealing with offsets on the Social Security Disability arising... Read More