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Workers compensation is NOT taxable. According to page 18 of Pub 525, under the heading, "Workers' Compensation", "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."
For more information, please click this IRS link: https://www.irs.gov/pub/irs-pdf/p525.pdf
Workers compensation is NOT taxable. According to page 18 of Pub 525, under the heading, "Workers' Compensation", "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."
For more information, please click this IRS link: https://www.irs.gov/pub/irs-pdf/p525.pdf
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