Question

I have a question about claiming workers comp on taxes. Do you claim workers comp on taxes as taxable income?

Answer

Regarding your question: do you claim workers comp on taxes, the answer is no. You are not subject to claiming workers comp on taxes because you need not pay tax on income from a workers compensation act or statute for an occupational injury or sickness. However, retirement plan benefits are taxable if either of these apply:

  • You retire due to your occupational sickness or injury
  • Your workers compensation payments reduce your Social Security or railroad retirement benefits.

Also, you might need to include workers compensation as income if:

  • You received the payments for an injury.
  • You previously deducted related medical expenses.

Related Topics

Related Resources

Earned Income Credit

Learn more about earned income credit eligibility and get tax answers at H&R Block.

What Is Virtual Tax Preparation?

Virtual tax preparations let you complete your taxes online from the comfort of your home. Find out how easy remote tax preparations can be at H&R Block.

Is Volunteer Work Tax Deductible? | H&R Block

Spending your time volunteering is a great way to give back. Learn more about the tax benefits for volunteer work when filing your taxes at H&R Block.

Filing for a Deceased Taxpayer

If you need help handling an estate, we're here to help. Learn how to file taxes for a deceased loved one with H&R Block.