Will the workers’ compensation insurer send me a 1099 or W-2?

Every year about this time, I get questions similar to the above one about whether or not the workers’ compensation insurer will send a claimant tax forms accounting for the weekly TTD (temporary total disability) checks or settlement funds from the previous year.  I’m not a CPA or a tax attorney, but since workers’ comp indemnity benefits aren’t taxable income (after all, they only cover 2/3 your pre-injury wage, up to a cap), my understanding is that you will NOT receive a 1099 or other tax form reflecting workers’ comp payments from the previous tax year.

So, if you’re waiting on something from the insurance adjuster before you file your taxes for last year, my firm advises to stop waiting!  Go ahead and prepare your tax returns and file them.

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