Is Workers’ Compensation Considered Income When Filing Taxes?

When you are on worker’s compensation and you’re receiving your temporary disability, you’re going to receive a portion of your regular income. OK? So that portion of your regular income, you’re receiving money, so that money is going to be a taxable event.

Worker’s comp is not going to pay you the same salary that you are receiving because most of my clients who get injured on the job or workers who work overtime and a lot of their income is derived from overtime, you’re not going to get overtime pay. You’re not going to get a salary based on your last two or three months of income. You’re simply going to get a percentage of your regular 40-hour pay. And whatever that money is that you get is going to be a taxable event.





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