What will the taxes be on my workers’ comp benefits or settlement?

As a Atlanta workers comp lawyer, every year during the first few months of a new year, this question comes up from clients.  The simple answer is “none.”  However, per IRS Publication 525, if you’re on Social Security, and it has been reduced by the amount of workers’ compensation benefits you’re being paid, that amount is likely taxable.  So, for the vast majority of injured workers receiving TTD, TPD, or PPD weekly benefits, there will be no tax consequences associated with your workers’ compensation benefits (or workers’ comp settlements).

 

If you spent most, or all, of 2015 on workers’ comp, this may be the simplest tax preparation season you’ve ever had!

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