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  1. #1
    Join Date
    Feb 2009

    Default Is a Workers Comp Settlement Taxable

    Does anyone know if you receive a final settlement if it is Taxable?

  2. #2
    Join Date
    Apr 2012

    Default Re: Settlement

    I received mine in N.J. and it wasen't taxed, but I wasen't working and was declared totally disabled.

  3. #3
    Join Date
    Oct 2006

    Default Re: Settlement

    Quote Quoting injrd back 1970 View Post
    Does anyone know if you receive a final settlement if it is Taxable?
    gross income doess not include workers compensation payments including settlements.

  4. #4
    Join Date
    Feb 2007
    Charlotte, NC

    Default 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

  5. #5
    Join Date
    May 2012

    Default 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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