Is lumpsum money from Workers' compensation due to fall is taxable?

fatimamomin · ‎January 19, 2022

I got a lumpsum payment settlement from Workers compensation due to a fall at my job a few years ago. I finally got the lumpsum in 2021. Do I have to wait for any type of form to disclose while filing taxes?

JamesG1 · ‎January 19, 2022

Workers compensation is probably not taxable and not reportable. See IRS publication 525 page 19 under Workers Compensation.

Literature received from the payee may have explained that the payment was not taxable.

If it were taxable income, it would be reported on a W-2 and issued by January 31.

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xmasbaby0 · ‎January 19, 2022

Workers compensation is not taxable. You do not enter it on a tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

JamesG1 · ‎January 19, 2022

Workers compensation is probably not taxable and not reportable. See IRS publication 525 page 19 under Workers Compensation.

Literature received from the payee may have explained that the payment was not taxable.

If it were taxable income, it would be reported on a W-2 and issued by January 31.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Is lumpsum money from Workers' compensation due to fall is taxable?