Are my Illinois Workers’ Compensation Benefits Taxable?
We have written about taxation in personal injury cases before, but many people also wonder whether workers’ compensation benefits are taxable.
While an Illinois workers’ compensation lawyer can go over these matters in greater detail, you should know that workers’ compensation benefits are not taxable. This is true even in the case of death benefits provided to family members. However, there are some situations in which your taxes may be affected.
Workers’ Compensation benefits and your Illinois taxes
Are Illinois Workers’ Comp benefits and settlements taxable?
The most important thing you need to realize when pondering the effect of your Illinois workers’ compensation on your taxes is the fact that neither workers’ compensation benefits nor settlements are taxable. The compensation you earn from your work-related injuries is meant to help you, and making such payments tax-free is a testament to that.
Do Workers’ Compensation benefits need to be reported as income on your Illinois tax return?
While workers’ compensation benefits are tax-exempt, they can have an effect on your taxes, especially if you receive social security disability insurance, supplemental security income, or retirement benefits. To learn more, it is important for you to speak with both a capable Illinois workers’ compensation lawyer and a tax professional.
To get more information about Illinois taxes and workers’ compensation benefits, download this handbook from the Illinois Workers Compensation Commission.
Need more help understanding if you have to claim Workers’ Comp on your Illinois taxes? Call our attorneys today.
If you find yourself in need of an experienced workers’ compensation lawyer in Illinois, you should seek the counsel of Rubens and Mulholland. We concentrate on workers’ compensation claims, and we charge no fee unless you collect. To discuss your legal options with a free consultation, contact Rubens and Mulholland online, at (312) 728-3014, or toll-free at (866) 938-4713.