Are Pennsylvania Workers Compensation benefits taxable at the State or Federal Level?

QUESTION:

Are Pennsylvania Workers Compensation benefits taxable at the State or Federal Level?

ANSWER:

This is the time of year that tax forms are sent by Employers. Many clients call our office and inquire about when to expect tax forms from their Pennsylvania Workers’ Compensation Carriers. Pennsylvania Workers Compensation wage loss benefits are not taxable at either the state or federal level. Injured workers should not expect to receive any tax form from their Pennsylvania Workers’ Compensation carrier. However, if the injured worker worked the prior year, the injured worker should still receive tax forms from their preinjury Employer for the period of time that you worked and received wages. In addition, there is no line on the Pennsylvania or Federal Tax Returns to list Pennsylvania Workers’ Compensation wage loss benefits.

If you would like to have your Pennsylvania Workers’ Compensation Case evaluated at no charge, call our office at 717-238-1657 for a free consultation.