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I received workers comp for a month. I'm told it's exempt. I had jo deductions, etc Do I list this as income?

 
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PaulaM
Employee Tax Expert

I received workers comp for a month. I'm told it's exempt. I had jo deductions, etc Do I list this as income?

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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4 Replies
PaulaM
Employee Tax Expert

I received workers comp for a month. I'm told it's exempt. I had jo deductions, etc Do I list this as income?

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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**Mark the post that answers your question by clicking on "Mark as Best Answer"

I received workers comp for a month. I'm told it's exempt. I had jo deductions, etc Do I list this as income?

However, it can be recorded as nontaxable income for purposes of the Sales Tax deduction if you itemize.

I received workers comp for a month. I'm told it's exempt. I had jo deductions, etc Do I list this as income?

I never have enough to itemize,  had only 1 month of it and was back to work after surgery.  First time for this oind of thing .  Thanks for the help!  Just wanted to make sure I was doing things right.
PaulaM
Employee Tax Expert

I received workers comp for a month. I'm told it's exempt. I had jo deductions, etc Do I list this as income?

You are welcome!
**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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