Legal Question in Workers Comp in Maine
If I receive a settlement for my worker's compensation injury, do I have to pay state or federal income taxes on the money?
Asked on 3/08/10, 9:38 am
1 Answer from Attorneys
David Marchese
Drummond & Drummond, LLP
Thank you for your inquiry. Typically, workers compensation pays an amount based upon an average of 80% of after tax earnings. Consequently, taxes are not usually charged against money received. However, I always tell clients that they should get an opinion from a tax expert, such as their accountant, before taking any action. I am not a tax expert. Good luck to you.
Answered on 3/15/10, 10:58 am