Do I Have to Pay Taxes on My Workers Comp Benefits? 

Workers compensation insurance was created to help workers who’ve been injured on the job receive the financial support they need while recovering. You could be compensated for lost wages and medical expenses related to your work injury.

You need every penny of your workers compensation benefits because you have to live off of those benefits until you can return to work. For that reason, you may be wondering, “Do I have to pay taxes on my workers comp benefits?”

Types of Benefits You Can Receive for a Work-Related Injury

When you file a workers compensation claim, you could obtain the money you need to pay for lost income and your medical treatment. Your benefits can also sometimes cover temporary disability. If a worker is killed on the job, death benefits could go to the family of the deceased worker.

Workers comp benefits won’t make you rich. They’re designed to help you out until you can get back to work. That’s why you need the full amount. You don’t want to lose out on those benefits due to the IRS taking a chunk.

Luckily, workers comp benefits are not taxable under state or federal laws. That’s one reason you receive less than your full income when receiving workers compensation benefits. For further questions about workers compensation and taxes, contact a workers compensation lawyer at our firm.

Contact a Hastings Workers Comp Lawyer

Now you know you most likely don’t have to pay taxes on your workers comp benefits. If you need help with a workers compensation claim in Hastings, NE, reach out to a Hastings workers comp lawyer at Conway, Pauley & Johnson P.C. Fill out the form below to reach our firm and get a free case assessment or call 402-462-5187.