Can my Workers Compensation be Taxed?

workers compensationDoes Workers’ Compensation Count as Earned Income?
In general, Workers’ Compensation benefits are not taxed as federal, state or local income. Although this is generally the case, you will need to consult with a Workers Comp lawyer in New York to find out if anything has changed in your area. The money that you are paid from Workers’ Compensation will be exempt from taxes if your benefits are paid under a Workers’ Compensation act.

The answer to the question may be different if you are also receiving Social Security Income. Then, your Workers’ Compensation benefits may be taxed, and your SSI payments will be reduced by the amount that your Workers’ Compensation benefits are taxed. For example, the Social Security Administration may reduce your SSI benefits by $300 because you are also receiving Workers’ Compensation benefits. Then, the federal government will tax the $300.

By hiring a Workers Comp attorney in New York, NY, you may be able to lower the amount of money that may be taxed.

Is Workers’ Compensation Considered Income for SSI?

Workers’ Compensation is considered to be income when you are receiving SSI benefits. In the event that the amount that you receive from Workers’ Compensation is more than the maximum amount that you would receive from SSI for one month, your income would be too high for you to qualify for SSI, and the Social Security Administration would deny your application. You could also have received a lump sum payment for your SSI disability benefits. If this is the case, you would have too many resources to qualify for SSI.

Is Workers’ Compensation Considered Income for Medicaid?

Workers’ Compensation is considered to be income for Medicaid as well. The amount that you receive in ongoing benefits and any lump sum payments will be considered by Medicaid when determining whether or not you qualify for the program.

Your Employer’s Workers’ Compensation Program.

Employers are required to offer Workers’ Compensation benefits to their employees if they contract an illness or are injured because of their jobs. Your employer pays the insurance carrier for this insurance. If you need to take benefits, the insurance carrier will pay your medical bills. In most cases, it doesn’t matter who was at fault in your accident.
The insurance carrier will sometimes pay your claim if the case is accepted for your injuries or your illness. Sometimes, you cannot come to an agreement with the insurance carrier. In that case, you must allow the Workers’ Compensation law judge to make the decision. If you and the insurance carrier have a disagreement, you may hire a Workers Compensation lawyer in New York NY to help you with this process.

If You Need Help…

Workers’ Compensation can be difficult to understand, but a New York Workers Comp lawyer will help you with any questions that you have. Our Workers Compensation attorney in New York NY has extensive experience working with Workers’ Compensation, and he or she will help you remain within the confines of the law. You will not have to converse with anyone at the insurance company because our Workers Compensation attorney New York NY will do all this work for you.

Contact us at Rella & Associates today if you have been injured or contracted an illness at work.

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