PaulaM
Expert Alumni

State tax filing

No, workers compensation is not taxable. 

See excerpt from IRS link below, page 18:

 'Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act.'

https://www.irs.gov/pub/irs-pdf/p525.pdf

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