So you are at work. Working your day away, and unexpected happens: you get injured. You file workers comp (don’t forget to call Victor Sargazy, ESQ), and receive compensation. Do you need to pay tax on this income?
In most cases worker’s compensation payments are not taxable on your tax return, benefits become taxable if person receives disability payment or supplemental social security. When filling tax return don’t forget to bring summary all your payment you receive during a year to your tax professional , so correct amount of taxable income calculated.