Tax question.

[cynicalfork]

Do I have to pay taxes on a workers compensation settlement I just got? Is it considered income or what? The check does say NET on it but, Im not sure as its just a personal check from my lawyer.

 

[yakko]

Everything is income. You think the IRS cares that it is workman's comp?

 

[kranky]

You know, for questions like these when people don't know the answer they ought to STFU.

Workers' comp is generally not taxable, BUT... see this table and read this more complete explanation (search the page for "Workers' compensation" - it's about 3/4 of the way down the page)

 

[cynicalfork]

Kranky,

Thanks, that was just what I was looking for. I appreciate your help.