Finding answers to your tax questions is now less taxing.

Get Answers To Your Tax Questions

H&R Block Tax Professionals relentlessly focus on making sure you profit from every deduction and credit available.

Are workers' compensation and unemployment taxable income?

Since 1987, the IRS has required unemployment benefits be included in gross income.

Workers' compensation isn't taxable if it's paid because of a job-related personal injury or sickness.

However, workers' compensation pay will be taxable in these situations:

  • The benefits offset your prior medical expense deductions.
  • Benefits are received under a private arrangement. Such benefits are taxable because they're not covered by the workers' compensation statute.
  • Benefits reduce or offset Social Security benefits. These will be taxed as Social Security benefits.

Look At Your Life Through Taxes

No matter which life stage you're in, H&R Block has the tools and resources to help you understand how taxes impact your life. It's our Purpose. We look at your life through tax... and find ways to help.

Tax Calculators

Estimate your withholdings, calculate your refund, or find out how health care laws may impact you.

Browse Tax Articles

Looking for articles written by the pros at H&R Block? Search our article database to find answers to all of your tax related questions.