anyone know what do i do, or how do i deal with workers comp when i do my taxes for last year...i was on workers comp for about 2 months...
2007-01-04 09:33:54 · 2 answers · asked by dmcg1012 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
No problem. You will get a form from the WCB that is almost the same as a T4 but you will enter it in a different location of the tax form. It counts as much as your regular earning, but later in the tax form you will take almost all of that income off as it comes to you with the taxes already removed. Follow along in the accompanied tax rules and you will have no problem.
2007-01-04 09:40:00 · answer #1 · answered by Deano 7 · 0⤊ 1⤋
Page 52 of IRS publication 17 states: "Amounts you receive as workers' compensation for an occupational sickness or injury are fully EXEMPT from tax if they are paid under a worker's compensation act or statute in the ... This exemption does not apply to retirement plan benefits you receive based on your age, length of service or prior contributions to the plan even if you retired because of an occupational sickness or injury." If part of your workers' comp reduces your social security or railroad retirement benefits then that part may be taxable.
2007-01-04 15:53:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋