If you've been injured on the job in Massachusetts and are receiving workers' compensation benefits, you may be wondering about the tax implications of these payments. This is one of the most common questions we hear from injured workers who are already dealing with the stress of recovery and lost wages. Understanding the tax treatment of your benefits can provide some financial and stress relief during an already challenging time.
The answer is straightforward: workers' compensation benefits are not taxable income. Whether you're receiving temporary total disability benefits (when you cannot work at all) or temporary partial disability benefits (when you can work in a limited capacity), these payments are exempt from both federal and Massachusetts state income taxes. This tax-free status applies to all types of workers' compensation benefits, including weekly disability payments and any potential lump-sum settlement you may receive.
Speak With an Experienced Massachusetts Workers' Compensation Lawyer
Don't let confusion about your workers' compensation benefits add to your stress during recovery. If you have questions about your Massachusetts workers' compensation claim, your benefit calculations, or any issues with your employer's insurance company, contact our experienced Framingham workers' compensation attorney, Chuck Pappas today. He'll review your case at no cost and ensure you're receiving all the benefits you're entitled to under Massachusetts law.
Call (508) 879-3500 or contact us online to schedule your free consultation – protecting your rights shouldn't wait.
A work accident isn't something most think about often until it happens to them. This is why injured workers typically have many questions and concerns after being seriously injured on the job. If you were hurt at work, you should have a good understanding of the workers’ compensation process and benefits available in Massachusetts. Experienced workers’ compensation lawyer, Chuck Pappas is here to help you during this difficult time.