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

Disabled Dependent

Do you care for a totally disabled relative? Find out if you can claim them as a dependent on your taxes. Get tax answers from H&R Block.

Unemployment Benefits And Child Tax Credit

Can you claim the child tax credit if unemployment benefits were your only source of income? Learn more from the tax experts at H&R Block.

Items On Prior Year Returns

Do you need to amend your prior year return to add an item? Learn more from the tax experts at H&R Block.

Premium Tax Credit

Learn more from our tax experts at H&R Block about the premium tax credit and how to receive it as an advance credit or claim it as a refundable credit.