Can you file workmen's comp as income on your tax return?

Answer 1

You don't pay tax on workers compensation received by you or your survivors for job related sickness or injuries paid under a workers compensation act or workers compensation statute in the nature of a workers compensation act.

The tax exemption on your tax return does not apply to retirement plan benefits you receive based on age, length of service, or prior contributions to the plan, even though you retired because of an occupational sickness or injury.

If your employer continues to pay your regular salary or wages and requires you to turn over your workers compensation benefits you are taxed on your tax return on the overage that was paid to you by your employer.

The part of your workers compensation that reduces your social security benefits or equivalent railroad retirement benefits is considered social security benefits and may be taxable on your tax return under rules for those types of income. Accordingly, your workers compensation may be indirectly subject to tax on your tax return.

But, if your employer requires you to sign your checks over to them and continues to pay you, you will pay taxes as they will report the wages paid to you and the taxes withheld from those wages on your W-2. Some employers only supplement with accrued leave time with the employee receiving the worker's comp checks. That is the only sure way to have your WC benefit non taxable.

Answer 2

In the state of Wisconsin, I had worker's comp from an injury at work and I was not taxed on it. I would imagine it depends on the state.

Check out the IRS Publication 15A for the year workers compensation benefits have been received. It clearly states that worker's compensation is not taxable. It is not taxable in Michigan, either.

Answer 3

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. The exemption also applies to your survivors. The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury.

If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. For a discussion of the taxability of these benefits, see Other Income under Miscellaneous Income, later.

Go to the IRS gov web site and use the search box for Publication 525 Taxable and Nontaxable income

Answer 4

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. The exemption also applies to your survivors.

If part of your workers' compensation reduces your Social Security or equivalent railroad retirement benefits received, that part is considered Social Security benefits and maybe taxable.

If you return to work after qualifying for workers' compensation, payments you continue to receive while assigned to light duties are taxable.

The above relates to federal income taxes. Generally, states follow the same rule, but you should check with your state's department of revenue for additional information.

Answer 5

its not required to in okla but they say its better to so they can not come back on u in the further

Answer 6

Not usually because this is not income. It is reimbursement.

Answer 7

Yes.