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.

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