I am a full time firefighter/paramedic in Michigan. I had a injury on the job and was on workers compensation for 4 months. I work 24 hour shifts, and I am paid based on 112 hours/2 week pay period. Our union has an agreement with the township that while we are off the job (injury) on workers compensation, they continue to pay us our normal pay check/normal pay(with federal/state taxes taken out). I was told this was done for our benefit, so there is no lapse in our benefits. The workers compensation agency cuts checks that are payable to myself and the township I work for. When I came back to work, I had to endorse the checks and the township cashes them. I am aware that workers compensation payments are supposed to be tax exempt for Michigan/Federal taxes. So my question is, when I go to do my taxes(Turbotax), is there a page/section to claim when I was on workers comp, and how much I was paid during that period? Will that result in a tax refund?
