Are there taxes on workers’ compensation benefits?

Being injured at work can be one of the most stressful times of your life. Your mental health along with your families can all be at risk when you are injured. This can take a toll on your ability to produce income and leave you with piles of medical bills. Workers’ compensation is an insurance that an employee must provide in the event that you are injured at work you can receive monetary benefits. In a majority of the cases, severity of the injuries will usually determine significant changes to the victim’s life. Many of these injuries on these injuries on the job can indeed be severe and permanent. Victims who suffer workplace injuries find themselves in a hole of medical bills, debt, and a loss of ability to work. As an injured employee however, you may face hurdles when you are trying to acquire these benefits.

 People assume that if they get injured at their job, they will automatically be approved for workers’ compensation benefits. That law still needs to be proven that you are eligible for benefits before you are actually awarded them. To become eligible, your injuries must be shown to be a direct result of an injury sustained while working. The complexities of a case such as this, will require the knowledge of a workers’ comp attorney. A law firm that has experience in workers comp injury cases will know what evidence is needed to pursue your claim and come out victorious. If you have received workers’ compensation, you are still able to file a lawsuit. Generally, the IRS does not consider NY workers’ compensation benefits to be taxable income. The IRS states that workers’ compensation benefits for job related injuries are not taxable. Workers comp can become taxable in certain situations. If the injured workers’ employer continues to pay salary while the worker is out, that salary typically remains taxable. There are times that a worker is receiving both workers’ compensation benefits and social security benefits. If that is the case, federal income tax laws will usually apply.

Workers compensation alone will not be enough to compensate a seriously injured victim. A third-party civil lawsuit is where you will be able to recover damages from those whose negligence caused your injury. Financial compensation equals to two-thirds of your average weekly wages based on your pay at the time of the accident, but it cannot exceed the New York State maximum. You will also be compensated for reimbursements for financial expenses such as, prescriptions, or traveling to see a doctor. You can also get financial compensation for injuries to body parts like hands or legs, even if it doesn’t prevent you from working. Any necessary medical treatment from doctors and chiropractors with treatment cost covered by workers’ compensation.

To prove your case, you must work for a company that carries workers’ compensation. Second, the injury must have happened as a direct result of performing your job or while you were carrying out the job duties. Third, you must give your employer a written notice of the incident that occurred within 30 days of the accident. Lastly, you should be able to show a medical report stating that your injury was caused on the job.

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