Do you pay taxes on workers compensation?

Reply Tue 2 Feb, 2010 09:31 am
My girlfriend was injuried on the job last august 2009 and drew workers compensation for about a month. She will also be getting a settlement of $240.00 also. Does she suppose to report the workers compensation on her tax return? What about the $240.00 settlement? She lives in the state of Virginia.
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Reply Tue 2 Feb, 2010 10:15 am
She doesn't have to pay taxes on the workers comp payments, unless she additionally received salary then the difference in workers comp payments and salary is taxable. Also, if payments are made under labor union contracts,
they're not tax free. As for the $ 240.00 settlement - that's tax free as well,
on a federal and state level.
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Reply Wed 3 Feb, 2010 03:58 am
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