Legal Question in Workers Comp in New York

Tax Liability for Worker's Compensation Awards

Is a person liable or responsible for income tax on worker's compensation awards received as a result of a work related injury? The employee is still working for the same company but in a different position and receiving a reduced salary. The Worker's Compensation award received was for the difference in salary for the past year. Also, for how many additional years will the claimant continue to receive awards for the difference in pay from prior to the injury to present day earnings? -Thank you.


Asked on 1/29/01, 12:52 pm

1 Answer from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: Tax Liability for Worker's Compensation Awards

I received your post on 3-12-2001.

The limit on receiving benefits is a long as the disability lasts...or until the person is scheduled out. The award is not taxable as the amount of lost wage reimbursement is reduced to reflect the tax burden.

The insurance company makes the determination on how long the disablity lasts based physical exam.

If you think that htere is a prblem with your emplyee, notifuy the insurance carrier about the ability to work the second job and they will investigate.

Good Luck.

RRG

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Answered on 3/12/01, 8:22 am


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