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Are Workers’ Compensation Benefits Taxable

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We’ve rung in 2014 but there’s just one more thing we need to do before we can say goodbye to 2013…our taxes.  It’s important that you know that your benefits paid under the Pennsylvania Workers’ Compensation Act are not taxable at either the state or federal level.  Make sure you or your tax preparer do not include this income on your tax return.

If you are a recipient of workers’ compensation benefits, you should not receive a W-2 or a 1099 form or any other form of accounting of annual benefits received from the workers’ compensation insurance carrier.