Labor & Industries Settlement

user17722417543 — Sat, 28 Feb 2026 01:30:27 GMT

Hello,

I was injured at work by a third party who was not my employer. Several months later, the Washington State Department of Labor & Industries issued me a settlement check that they had negotiated on my behalf with the individual responsible for the accident.

Based on the information I have found, it appears that such settlements are generally not considered taxable income. Could you please confirm whether this settlement is subject to taxation?

Thank you for your assistance.

Re: Labor & Industries Settlement

MaxA1 — Tue, 03 Mar 2026 04:37:07 GMT

Correct. Compensation for physical injuries or sickness is nontaxable, while compensation for damages, emotional distress, or non-physical injuries are considered taxable income. See the following IRS link for more information on this:

Tax implications of settlements and judgments

topic Labor & Industries Settlement in After you file

Labor & Industries Settlement

Re: Labor & Industries Settlement