For the most part, workers’ compensation benefits are not taxable at either the federal or state level. Under the Workers’ Compensation Act, workers’ compensation payments fall under the category of non-taxable income. Non-taxable income is a special category of income that also includes
- Compensatory damages for personal injury cases
- Compensation for permanent disfigurement
- Payments from a public welfare fund
- and others
If you’ve suffered on-the-job injuries, these benefits can be helpful, if not necessary, for your livelihood. Workers’ compensation can help you cover expenses including the following:
- Medical expenses
- Lost wages
- Costs of ongoing care
- and others
Of course, each workers’ compensation settlement is unique, and depends on the victim’s injuries, the circumstances around the accident, and other factors. These complications necessitate an experienced Louisiana workers’ compensation lawyer like Gordon McKernan Injury Attorneys.
Exceptions to the Tax-exempt Status of Workers’ Comp
There are a few circumstances under which you could still have to pay taxes on your workers’ compensation payments. One of these is known as the workers’ compensation offset: if you also receive disability benefits through Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), those benefits may be reduced to remain below a certain threshold.
It’s okay if this seems confusing—it is! Call the experienced workers’ compensation lawyers with Gordon McKernan Injury Attorneys at 888.501.7888 for a free consultation about your case, and we’ll get started right away to get you the compensation you need to heal from your injuries.
INJURED?
GET HELP NOW!
