Workman's Compensation is not taxable on your federal return and not taxable on your state return. Since you don't enter your Workman's Compensation on your federal return, nothing will transfer to your D.C. return so nothing is taxable.
- Per IRS Publication 525, page 19: Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they're paid under a workers' compensation act or a statute in the nature of a workers' compensation act.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
