Do I Have To Pay Taxes on Workers’ Compensation Benefits?
IRS Publication 907 reads as follows: “The following payments are not taxable … Workers’ compensation for an occupational sickness or injury if paid under a workers’ compensation act or similar law.”
You do not have to pay income taxes on any benefits that are paid out under workers’ compensation in Pennsylvania. If any tax preparer or advisor asks you about it, it is perfectly acceptable to tell him or her that these benefits are not taxed. If you have questions about your rights, it is important to speak with a lawyer.
Workplace Injury Lawyers in Pennsylvania
Given that workers’ compensation benefits are generally about two-thirds of your regular weekly wage, it is helpful that taxes are not taken out, since bills still need to be paid following a workplace accident. Make sure that you know all of your workers’ compensation rights so that you get the maximum amount of benefits that you need.
The system of workers’ compensation is designed to protect victims of workplace accidents and injuries, regardless of fault, and to help them recover the money they need to pay for medical bills, lost wages and other expenses during recovery.
Discuss Your Workers’ Comp Claim With Our Firm
To talk with one of our lawyers about your workers’ compensation claim, contact us today. Schedule a free consultation at one of our Pennsylvania offices to get answers to all of your questions.