Cynthiad66
Expert Alumni

Get your taxes done using TurboTax

You should contact your Human Resources office for a breakdown of the workers compensation.  You can just make a call for that information and ask them to follow-up with a statement for your own records.

 

You can also compute for the number of months you were paid or worked, you can back out the salary and what remains is workers compensation.

 

Workers’ compensation benefits exist to provide relief to workers who suffer injuries in the workplace. Workers’ compensation can potentially help pay for immediate medical expenses and offset the economic impact of missing wages, but workers’ compensation may not fully cover the cost of a workplace injury. Some injured workers may wonder whether workers’ compensation benefits will affect their tax returns, and it is vital to understand how government benefits at the state and federal levels work to determine your tax obligations.

 

TAXABILITY OF WORKERS’ COMPENSATION BENEFITS

Workers’ compensation benefits do not qualify as taxable income at the state or federal level. Lump sum settlements from workers’ compensation cases do not count as taxable income either. Usually, workers’ compensation benefits will not affect your tax return. If you are currently on workers’ compensation benefits and do not see a W-2 for the tax year while you were on benefits, do not panic. You will not receive any tax documents about your workers’ compensation benefits and it is not necessary to include your workers’ compensation as income when you file your taxes.

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