People always ask if their workers’ compensation payments are taxable. Its a great question as you know that old joke that the only things that are certain are death and taxes. Fortunately, we’ve got good news for you! According to the IRS website, ” Amounts you receive as workers’ compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers’ compensation act or a statute in the nature of a workers’ compensation act. The exemption also applies to your survivors. The exemption, however, does not apply to retirement plan benefits you receive...
