Consult with a New York Workers' Compensation Lawyer
Income Tax Law and Workers' Compensation Benefits and Awards
Workers' compensation wage loss replacement benefits are not taxable or reportable under federal or state income tax laws.
Wage continuation by the employer after a work injury, if available, is often taxed as regular income; however, that part of wage continuation that otherwise would be paid as workers' compensation wage loss replacement is not taxable. Most employers offering wage continuation do not separate taxable and non-taxable compensation payments on W-2 forms. In such a scenario, an injured worker must look to Notices of Decision filed by the Workers' Compensation Board, which usually set forth the periods and amounts of employer reimbursement or credit for wage continuation. The amount reimbursed or credited to the employer represents the amount the injured worker is able to deduct from W-2 gross wages to determine income tax for the year involved. It is sometimes necessary to file an amended tax return if the Notice of Decision is not filed by the Board until after an income tax return is filed for the year involved.
Do not hesitate to contact our firm today to discuss your case. We offer a free case evaluation to all new potential clients.
The Hudson Valley workers' compensation attorneys at Kirk & Teff, LLP, have more than 185 years of combined experience to help you when you're injured on the job. Make sure you have the best available legal representation. We will vigorously protect your rights and your best interests.
"Everyone I dealt with from the K&T staff were great and I felt Mr. King was always on top of matters regarding my claim."Jim
"I refer cases to Kirk and Teff. Consistently their attorneys go above and beyond for our mutual clients. I highly recommend this law firm for Workers' Compensation and Social Security Disability claim ..."John D.
"I have used Kirk and Teff two different times. Everyone is friendly helpful and knowledgeable. I will continue to use them for any other law firm needs. And I would recommend them to anyone looking ..."Matthew F.
"Kirk and Teff has been by my side every step of the way after an unfortunate accident that has left me out of work for the past 5 months. They are very kind and very smart and diligently fighting for ..."Stephano V.
"Mr. Kirk is down-to-earth and easy to talk with. Jodi is an absolute gem, who has continuously gone to bat for me with any issues I have. I 100% recommend this law firm for anyone in need!"Henna J.