Will Your Florida Workers' Compensation Benefits be Taxed?
After an injury on the job, the amount of stress you feel as you face recovery and an inability to work can be overwhelming. When you file for workers’ compensation benefits and your claim is successful, the financial support while you focus on getting better takes some of the pressure off. Being able to have your medical bills paid and still have a portion of your take-home pay to help you stay on track with your personal bills is very important. When tax time comes though, you may be wondering if the benefits you received through your Florida workers’ compensation benefit will be taxed. Speaking with a qualified Florida workers’ compensation attorney can help answer this question as well as any other concerns you have regarding your workers’ compensation benefits and the workers’ compensation process.
Are Florida Workers’ Compensation Benefits Taxable?
According to the Internal Revenue Service, the benefits you receive from your Florida workers’ compensation claim are not taxable. The money that you get as a result of your work-related injury or illness is exempt from taxation when it was dispensed to you via a workers’ compensation act. Neither the federal government nor the state of Florida will tax those benefits.
For individuals that are receiving both Supplemental Security Income or Social Security Disability Insurance along with money from a Florida workers’ compensation claim, it is a different story. Taxes may be assessed depending on how much you are getting through both benefit sources. When you are receiving SSA in addition to workers’ compensation benefits, there is an established limit to how much you can receive. If the money you are getting from both sources exceeds this amount, you are likely to see your SSA check lowered to compensate for the overages. This happens when your combined benefits are more than 80% of what your weekly pay was before your injury accident occurred.
If this happens and your check is decreased, the amount of money that is taken out of your SSDI or SSI funds becomes taxable. Many times, the amount of money that your payments are reduced by, is very small. Tiny sums of money may not qualify for taxation. Figuring out how much you will owe if any can get confusing especially if you aren’t particularly up-to-date or well-educated in workers’ compensation law. Working with a skilled Tallahassee workers’ compensation attorney can help arrange your workers’ compensation settlement so that you can pay as little tax on your benefits as possible or better yet, prevent any taxes to your benefits.
Speak to a Florida Worker’s Compensation Lawyer Today
There are several fees that are used to determine if your check will be lowered. Stephen M. Andrews, P.A., is a resourceful Tallahassee Social Security Disability lawyer that knows what information is necessary to help keep the money you receive in the range that reduces or eliminates your potential tax burden.
Call Stephen M. Andrews, P.A. immediately after your Florida workplace accident at (850) 906-9599. Consultations are always free and if you decide to work together, you pay nothing unless you get your benefits.