If you have suffered a workers’ comp injury, you probably have a lot of things on your mind. Are you going to recover? Are your medical bills going to be paid? Is your employer going to treat you fairly or do you need to hire a workers’ compensation law firm in order to protect your rights?
Chances are you are not thinking about your taxes right now. And you haven’t even begun to consider what a workers compensation settlement might mean to your tax situation.
Is Workers’ Compensation Taxable?
Do you need to report your workers’ comp benefits as taxable income when you file your taxes? The short answer is no. But, of course, when it comes to taxes, nothing could be that simple.
Workers’ compensation benefits are not taxable at the federal or state level – unless you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) from Social Security.
So, let’s say you are receiving workers compensation benefits from your employer or you employer’s insurance carrier. If you are also receiving SSI payments, you may owe taxes. In these cases, the amount of taxes owed is usually minimal. The determination is made using what are called offsets.
Obviously, though, you don’t want to take any chances when it comes to your filing taxes. Your best bet will be to talk to an experienced workers’ compensation lawyer who can assess your unique situation.
Don’t wait until the week before your taxes are due to ask these important questions. Fort Lauderdale workers’ compensation attorney Nick Panebianco has the experience and the understanding you need to navigate the workers’ compensation system. Contact the Panebianco Workers’ Compensation Law Firm for more information.