Do I have to pay taxes on my Worker's Compensation income benefits? What about my settlement?
No, Worker's Compensation benefits are paid as a reduced amount of your average weekly wage prior to your accident. Based on that they are not considered taxable income for state or federal taxes. That also applies to the settlement in your Worker's Compensation case. The settlement documents in your workers' compensation claim are written in a way that makes it non-taxable for Social Security income as well.
Come see us at Pritchett Firm, PC, in Chamblee, Georgia, where we can answer these and any other questions you have about your claim. Call us today at 404-962-0010!