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  1. #1
    Join Date
    Nov 2009

    Default Are Comp Wages Taxed in Az

    I just learned I will be having surgery on my shoulder in the next couple of weeks. I have been worried about receiving 2/3 pay but someone mentioned that is is not taxed by state or federal. Does anyone know if this is true in AZ?

  2. #2
    Join Date
    Feb 2007

    Default Re: Are Comp Wages Taxed in Az

    Yes it's true. Your WC TTD/Temp Total Disability, and/or settlement money is NOT taxable at the state or federal level. Doesn't matter what state you are in.

  3. #3
    Join Date
    Nov 2009

    Default Re: Are Comp Wages Taxed in Az

    Thanks. That's a relief to know that. My manager is telling me that I won't be able to return to work on light duty (not sure that's really his call) but it sounds like my pay won't be that far off from normal anyway then. I appreciate your help.

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