Legal Question in Workers Comp in Pennsylvania
I received unemployment while fighting for workmanship comp. I received a judgement and they got credit for paying me unemployment. Do I get credit for paying taxes on my unemployment from last year? Do I have to pay taxes on unemployment from this year?
1 Answer from Attorneys
The credit that the WC insurance carrier is entitled to, by law, is the UC net benefit (after taxes) that you received. Hopefully, that is all the WCJ awarded. If the award of the credit is specific and for the gross, instead of the net amount, you lawyere may need to work someithing out with opposing counsel or file an appeal.
You may have to pay taxes again on your UC this year. Your WC is not taxable income and does not have to be reported. But your UC benefit is. Whether you will have to pay taxes depends on the total received, your itemized deductions, and the total picture regarding your taxes at the end of the year.