When you’ve been seriously injured at work, workers’ compensation benefits can provide crucial financial support to cover medical bills and lost wages. Fortunately, under federal and state laws, workers’ compensation benefits are generally not taxable. This means you do not have to worry about setting aside a portion of these benefits for tax purposes, which is a significant relief when you’re already dealing with the challenges of an injury and reduced income.
However, understanding the nuances of how workers’ compensation benefits interact with other forms of income can be important. For instance, if you’re receiving both workers’ compensation and Social Security Disability Insurance (SSDI) benefits, a portion of your SSDI may become taxable under certain circumstances due to what is known as the “workers’ compensation offset.” This situation is relatively rare but worth discussing with a qualified attorney or financial advisor if it applies to you.
If you’re relying on workers’ compensation benefits to pay your bills and stay afloat, it’s natural to wonder about all financial implications, including taxes. At 770GoodLaw, we understand the complexities of workers’ compensation cases and are here to answer any questions you have. Whether you need assistance securing the benefits you’re entitled to or clarifying your rights, our experienced team is here to help.
Contact 770GoodLaw today for a free, no-obligation consultation. Let us provide you with the guidance you need to focus on recovery without unnecessary financial stress.
