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.

At Martin Law, in Philadelphia, our lawyers have the experience to help you understand your rights and the various issues that may arise following a workplace accident. Call our firm at 215.587.8400.

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.

Let us evaluate your claim —FREE— 215.587.8400

Awards & Accomplishments

The workers' compensation attorneys at Martin Law have received numerous honors and awards—from other lawyers, neutral third-party publications and trusted consumer organizations. The achievement we are most proud of is simply being able to help the many decent, hardworking people who have suffered the misfortune of a work injury.