Does anyone know if you receive a final settlement if it is Taxable?
• Illinois Worker's Compensation - Quick facts about worker's compensation law, benefits and lawyer fees.
• Illinois Worker's Compensation Resources - Links and resources for injured workers.
Senior Member
Is a Workers Comp Settlement Taxable
Does anyone know if you receive a final settlement if it is Taxable?
Junior Member
Re: Settlement
I received mine in N.J. and it wasen't taxed, but I wasen't working and was declared totally disabled.
Senior Member
Re: Settlement
gross income doess not include workers compensation payments including settlements.Quoting injrd back 1970
http://www.law.cornell.edu/uscode/text/26/104
Senior Member
Re: Settlement
Settlements for physical injuries are not income taxable under IRS rules. But if your settlment has a confidentiality agreement in it, that may convert part or all of it into taxable money.
The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).
Bob Bollinger, Attorney at Law and Board Certified Specialist in NC Workers' Compensation Law, Charlotte, NC
Junior Member
Re: Settlement
as i understand it, no - WC benefits are not taxable and not required to be reported as income.
@complwyr - do mind sharing where you obtained info on the confidentiality clause issue? i have never heard of this and would like to know. thx
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