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Do I Have to Pay Taxes on My Workers Comp Benefits?
When you’re hurt at work, your first thought may not be, “Do I have to pay taxes on my workers comp benefits?” But that can be a major concern later as you’re filing your workers comp claim and thinking about your financial future.
At Pothitakis Law Firm, PC, we know thinking ahead is key for getting the benefits you need, not just what the Iowa workers comp insurance company is willing to pay. Here’s what you can expect from your taxes when you’re hurt on the job.
When Your Benefits Aren’t Taxable
In most cases, your workers comp benefits are not taxed. It doesn’t matter whether you receive regular payments or receive your benefits in a lump-sum settlement, either. Your benefits shouldn’t be taxed on the state or federal level.
That can take a little pressure off you. You don’t have to worry about extra W2 documents for your workers comp benefits. You can just use the benefits you need for your physical recovery.
Exceptions for Your Workers Comp Benefits
But that doesn’t mean you can’t be taxed in any situation for these benefits. If you receive Social Security Disability Insurance, or SSDI, payments at the same time, your workers comp benefits can be affected. You may be expected to pay some taxes on these benefits.
In these cases, your Iowa work comp lawyer can help you get the benefits you need and help you understand the taxes you may have to pay. Your lawyer can help you determine how to get your benefits without getting a nasty surprise when tax time rolls around.
Maximize Your Benefits with an Iowa Workers Comp Lawyer
Injured in a work accident but worried about your income when tax season rolls around? Your lawyer from Pothitakis Law Firm, PC can help. We can review when your taxes may be affected by your workers compensation benefits. If you have questions about your claim, get answers starting with a free consultation. Call 319-754-6400 or complete the online contact form below.