Florida Workers’ Compensation and Income Taxes
Our clients often ask at this time of year if taxes have to be paid on the money benefits received through workers’ compensation. Presently, injured workers do not have to pay income tax on indemnity benefits. However, if you are an injured worker and you go back to work on light or limited duty, you will pay taxes on any wages earned while working. In Florida, regarding a workers’ compensation settlement, usually there is no tax withholdings taken from the settlement.
For additional information regarding income tax obligations, you may want to visit the IRS website at: www.irs.gov. Tax laws can be complicated and are always subject to change. To answer any form of tax questions regarding any workers’ compensation settlement, periodic payments, or annuity payments, you should consider consulting with a tax attorney or certified public accountant to determine your tax responsibilities and to confirm you have fully complied with all tax related obligations.
Should you have any questions about your workers’ compensation injury, please contact us at Harris Guidi Rosner at (904) 777-7777 or contact the workers’ compensation department for a free evaluation of your case via email at email@example.com.