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Are Workers Comp Benefits Taxable? | Kooi Law

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Are Workers Comp Benefits Taxable?

When you’re hurt on the job, you likely just want to focus on healing, not on your taxes. Unfortunately, tax season may come soon, and you don’t want to be caught off guard. So are workers comp benefits taxable? 

A mistake on your taxes can lead to a serious headache or legal trouble. The Indianapolis work comp lawyers at Kooi Law can help Indiana workers get their benefits and ensure they take the right steps to protect that coverage. 

Most Workers Comp Benefits Aren’t Taxable 

When you’re hurt on the job, you may be worried about what that will mean for you when your taxes are due. That’s especially concerning because you may only make two-thirds of your original wages following the work accident, and money may be tight. 

Luckily, you don’t have to worry about tax day and your workers comp benefits. Your workers comp benefits shouldn’t be taxed, no matter what type of work accident you had or what your original wages were. You shouldn’t have to worry about your taxes, too. 

Exceptions When Benefits May Be Impacted

But that doesn’t mean your workers comp benefits can never impact your taxes. That’s especially true when you reach retirement age. While your workers comp benefits aren’t taxed, your workers compensation can impact your retirement benefits. Social Security benefits are also taxable, and if you’re receiving these benefits, your workers comp benefits may be indirectly impacted. 

While your workers comp benefits may not be directly affected, you may see some impacts to the total funds you receive. Because of this, you may need to speak with your workers comp lawyer about protecting your benefits and ensure you understand whether and when your funds will be taxed. 

Maximize Your Benefits with a Lawyer’s Help 

Understanding your Indiana workers comp benefits isn’t easy. That gets more complex if you’ve reached retirement age, with other benefits impacting the benefits you may have been receiving for years.

While workers comp benefits aren’t taxable, you may need help understanding how your benefits can be reduced or otherwise impacted by your other benefits. At Kooi Law, we understand how confusing these questions can be, especially when tax time arrives. Luckily, your lawyer can help, starting with a free consultation. Reach out by calling 317-569-1335 or by completing the online contact form below. 

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