I was injured at work. My employer covered all medical/PT. They also determined that I had a partial long-term disability. I received a one-time payment. Is that taxable?

[ToddL99]

How was this one-time payment reported to you - on a 1099, a W-2 or just a check?

[tmb86]

It was just a check. No indication on the W-2 of any payment.

[ToddL99]

If you only received a check, it is likely that the payment was compensation for the physical injury you sustained, and not as paid sick leave.  Payments of this nature  are not taxable and do not get reported on your tax return.

Section 104(a)(2) of the Internal Revenue Code (IRC) mandates that compensation paid “on account of” personal injury or sickness is generally not taxable.  This means the federal government does not tax portions of settlements and awards that emanate from physical injuries.

[tmb86]

Thank you!