Are Worker’s Compensation Claims Taxable in Massachusetts?

As of November 2016, there have been 2,379 workers’ compensation claims filed in the state of Massachusetts, according to the Department of Labor. When you’re hurt on the job, you depend on workers’ compensation to allow you to pay your medical bills, recover from your injuries and get back on your feet.

One of the biggest concerns that many people have is whether their benefits are taxable income. Each state has its own rules and regulations where this is concerned. Learn from Boston workers’ compensation lawyer John J. Sheehan whether worker’s compensation claims are taxable in the state of Massachusetts, and how you can avoid a big bill come Tax Day.

Workers’ Comp and Federal Taxes

You might be wondering, first of all, if workers’ comp is subject to federal taxes. The short answer is “No. Workers Compensation checks are not subject to federal taxes.” Here’s the wording from IRS Publication 525:

“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.”

Massachusetts Taxes and Workers’ Compensation

The same applies for Massachusetts; Workers Compensation is not taxable in the state of Massachusetts.

Boston Workers Compensation Attorney

If you’re currently applying for workers’ compensation in the Boston area and are uncertain about next steps, it’s important to have knowledgeable legal representation. A qualified and experienced attorney serving injured workers in Massachusetts can be your best ally and source of information. If you find yourself in a situation like this, Massachusetts workers’ compensation lawyer John Sheehan can help. Read over our Workers’ Compensation FAQ and give us a call for more information and help today.