A commonly asked question our worker's compensation lawyers receive is whether or not you need to pay taxes on a worker's comp settlement. The good news is that the answer is typically no. In the majority of cases, injured workers do not need to pay taxes on any benefits they receive from their settlement.
Paying Taxes on Worker's Compensation
The exception is if you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) in addition to your worker's compensation benefits. Since your combined SSDI/SSI payments and worker's comp payments must be below a certain threshold, often one or the other will be reduced in order to stay below that threshold. This is called a "worker's compensation offset," and the amount that your worker's comp is reduced by is the amount that is taxable.
Luckily, even in the rare case that your worker's comp benefits are taxable, the taxable amount will be very small. In addition, an experienced lawyer can help structure your worker's compensation benefits in a way that reduces the amount of taxes you'll owe, if any.
Why Do You Need a Worker's Compensation Attorney?
An experienced attorney is essential when trying to navigate the complexities of worker's compensation, especially if you are also drawing disability or supplemental income. Our attorneys at the Law Offices of Humberto Izquierdo, Jr., PC have helped a large number of injured workers get the most out of their claims. Our lawyers will assist you with:
- A strong understanding of worker's compensation law
- Helping you fill out your claims forms so you don't make mistakes
- Valuing your claim
- Negotiating for better settlement terms
- Handling any social security and taxation issues
Schedule Your Free Worker's Comp Consultation
If you've been injured on the job, don't hesitate to contact the Law Offices of Humberto Izquierdo, Jr., PC at 770-999-9015 for your free case evaluation. We can help you obtain the best possible outcome for your claim, and help you with the process so that you can focus on healing. We serve clients in Marietta, Cumming, and Atlanta, GA. Our entire office is bilingual in Spanish and English.