The Dreaded Season of Paying Uncle Sam…

In News by Maggie Shankle

If you are fortunate enough to be gainfully employed and earning income, you are likely gearing up for filing taxes on April 18, 2016.  Or, you may one of the early birds that already filed and hope for a rapid tax refund…if so congrats to you for getting it over already!  About this time each year our workers’ compensation clients call asking if they owe taxes on their workers’ comp benefits or settlement.  The short answer is “no.”  Those receiving TTD, TPD or PPD weekly benefits will pay no taxes on workers’ comp benefits received weekly or a settlement received.  However, if you are on Social Security and it is being reduced by workers’ comp checks, that reduced amount is considered social security benefits (not workers’ comp) and may be taxable.