Are My Workers Compensation Benefits Taxable?
One of the most common questions we get around this time of year is: “Do I need to report my Arizona workers compensation benefits or settlement proceeds to the I.R.S.?” or, “Are my Arizona Workers Compensation Benefits taxable?”
Almost always, the answer is NO!!! Generally speaking, Workers’ compensation benefits are currently not subject to federal income taxation. However, if your workers’ compensation benefit reduces your Social Security Disability benefit, the portion that reduces is considered Social Security for taxation purposes. One of the justifications for workers compensation benefits being only 66 2/3% of your regular wage is that they are tax exempt.
If an injured worker has specific questions about this matter, we recommend you contact the Internal Revenue Service or your tax advisor.
Snow, Carpio, and Weekley are attorneys with offices in Phoenix, Tucson and Yuma. They have represented thousands of injured workers before the Industrial Commission of Arizona.
What Our Clients Are Saying!
Our unique approach to working with our clients
This Firm Stands Up for Working Families
"This law firm really stands up for working families; stands up for workers and will take your case and fight for your case. And get you the best possible settlement that you can have. You should trust in this law firm. This is the law firm that stood when the state was being challenged under SB1070 the anti-immigrant law."
I Recommend This Firm To You
"Hi, my name is Ron Selma and I’ve been a client for a year and a half. Snow, Carpio & Weekely, have been very professional for me and I would recommend this firm to anyone. They all are very professional."
"My name is Jennifer Logan & I was injured on the job in January of 2013. Chad Snow came highly recommended from an attorney that I work for. I’ve been coming here ever since I consulted with him. He helped me out."
In An Accident At Work
" Alex Carpio has been my attorney since the beginning in August of 2012. I was in an accident at work and I explained everything. At that point he said: “We’re going to continue & we’re going to go on with this because you do have a case.” I would recommend Alex Carpio very highly. He’s a great gentlemen and he listens."
Arizona Workers Compensation Results
"I was injured on 10-1-2010. During that time I was in so much pain. I was really happy that I was able to find Snow, Carpio & Weekely. If you look at my file I've over 3.5 years of paperwork. There’s no way that I would have been able to handle it on my own. They reminded me when I was supposed to go to court and took care of all the legal proceedings."
We Recommend This Firm To You
"Hello, my name is Jorge Ramirez and my lawyer was Alex Carpio. He is a really good lawyer and I would recommend him to a lot of people. Snow, Carpio & Weekely, have been very professional for me and my wife. Thank you Alex Carpio."
At Snow, Carpio and Weekley, PLC, we don’t identify you by your injury or your claim. We recognize you by name and by face. You have an important life with people who look up to you and depend on you. We treat you with that same respect. We will work with you on your Workers’ Compensation or Social Security Disability claims, helping you secure the benefits you deserve; affording you dignity today and hope for the future.