Workers' compensation benefits aren’t taxable and shouldn’t be claimed on your yearly tax statements. Here’s what you need to know:
Non-Taxable Benefits: Workers' compensation benefits are not taxable and should not be included in your taxable income
W-2 Form: You’ll still receive a W-2 if you earned taxable wages in the same tax year that you received workers’ comp benefits. However, the W-2 should not include your workers' compensation benefits. If it does, please contact your employer for a corrected W-2
For more information, you can visit these IRS links:
