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

Pennsylvania (PA) State Refund

Are you a wage earner in Pennsylvania (PA)? Find out how to check when you may receive your PA state tax refund with help from H&R Block.

Deduct Prepaid Mortgage Interest And Real Estate Taxes

Learn about the tax implications of prepaid mortgage interest and real estate taxes to determine if you can deduct them or not from the tax experts at

Section 179 Deduction For Vehicles

Can you claim depreciation if you took a Section 179 deduction on a vehicle's full purchase price? Learn more from the tax experts at H&R Block.

“Lookback” rule lets you use 2019 income on two credits

Heard about a new rule that lets you apply 2019 income to your 2020 taxes? Find out what’s myth vs. reality for this recent change from H&R Block.