My employer sent me a 1099 misc for my workers compensation do i have enter it on my return

[singingpeaches]

my employer sent me a w-2 and a 1099 for my workers compensation. i thought workers compensation was not taxable so why did I receive a 1099

[CathiM · Accepted solution]

If you received your workers compensation "under a workers' compensation act or a statute in the nature of a workers' compensation act" it is not taxable and they should not have issued you a 1099-MISC. Call your state's workers compensation office and find out what you can do. In the meantime, the IRS expects to see that income on your tax return.  If you can wait to file your return until you talk to the state and your employer, I would do that. Your employer can easily file a corrected 1099-MISC to zero it out.  If not, I put instructions below to report it as non taxable.

https://ttlc.intuit.com/replies/5637489

The only exception is if you were receiving Social Security disability insurance or Supplemental Security Income part of your workers compensation could be taxable according to the workers' compensation offset. 

Enter it under Wages & Income: 

1. On Your 2017 Income Summary, scroll down to Less Common Income,
2. Click on Start next to Miscellaneous Income, 
3. Then scroll down and choose Other reportable income
4. Answer Yes to "Any Other Taxable Income?" 
5. Under Description put "1099-MISC for workers comp"
6. Enter the amount from the 1099-MISC in the next box, click continue, 
7. Click on "add another income item", 
8. Under Description this time put "1099-MISC non taxable workers comp"
9. Enter the same amount but as a negative. 
10. On the Other Miscellaneous Income Summary make sure you see the 2 items, one positive and one negative and Total is $0.

[STRBKKPNG]

Awesome!  Thank you.