there no taking takes out on my checks i recieve weekly so do i have to pay taxes on these checks at the end of the year?
2006-10-09 07:39:37 · 5 answers · asked by prprincessvita 1 in Business & Finance ➔ Taxes ➔ United States
i hurt myself at work and i get a check from the insurance company
2006-10-09 08:50:50 · update #1
amounts you receive as workers compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers compensation act or a statute in the nature of a workers compensation act......no you do not claim them...workers compensation is insurance basically....i think your other answerers are confusing this with unemployment benefits which are taxable and must be reported
2006-10-09 07:50:42 · answer #1 · answered by cookiesmom 7 · 3⤊ 0⤋
No, it is not taxable, do not have estimated taxes withheld from your worker's comp.
According to the IRS:
The following payments are not taxable.
Benefit payments from a public welfare fund, such as payments due to blindness.
Workers' compensation for an occupational sickness or injury if paid under a workers' compensation act or similar law.
Compensatory (but not punitive) damages, for physical injury or physical sickness.
Disability benefits under a “no-fault” car insurance policy for loss of income or earning capacity as a result of injuries.
Compensation for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement.
2006-10-09 09:01:09 · answer #2 · answered by RamsGod 3 · 0⤊ 0⤋
yes, you will have to claim them, have the insurance company hold out taxes or you will wind up in a mess at tax time.
2006-10-09 07:46:48 · answer #3 · answered by customcat2000 4 · 0⤊ 1⤋
Yes, you do. Contact them and have them withhold 15% on the remaining checks. You'll still owe some, but it won't break you.
2006-10-09 07:47:37 · answer #4 · answered by loryntoo 7 · 0⤊ 1⤋
No.
2006-10-09 07:46:54 · answer #5 · answered by Ring Ring Ring Bananaphone 5 · 0⤊ 1⤋