Life should be as simple as going to work, earning a living and teaching your kids right from wrong, but it's not. Sure, the average New York hardhat might be able to live a simple life for a while, but if you suffer a serious workplace injury, it will teach you just how complicated things can get.
I bet you never considered the best "legal strategies" needed to qualify for workers' compensation benefits, did you? And as for the question of whether your workers' compensation benefits are taxable, the answer isn't exactly cut and dry.
What does the law say about work comp benefits taxation?
As a rule in most circumstances, workers' compensation benefits cannot be taxed by federal or state governments. This means that the compensation used to pay for your medical care - and even money paid to replace your wages - is entirely exempt from taxes.
That said, just like in all legal areas, there are exceptions to the rule. If you're getting paid Social Security Disability Insurance (SSDI), or if you're receiving Supplemental Security Income (SSI), then part of your workers' compensation money could be subjected to taxes. As such, it's vital to talk with your work comp lawyer, a certified public accountant or a tax lawyer to get some clarity on this issue.
Fortunately, if you are required to pay taxes, the amount of your tax liability will usually be negligible. Also, a savvy lawyer or CPA might be able to organize your benefits payments to minimize your tax liabilities as much as possible.
When things get complicated, always ask for help
At a workers' compensation law firm, complicated issues related to "legal strategies" and tax liabilities are exactly what they think about every day. That's why savvy construction workers turn to a workers' compensation lawyer for help when they get hurt. Rather than getting bogged down by the details that take years of studying and practice to fully understand, with the help of a lawyer, injured constructions workers can wrap up their workers' compensation claims in the most effective and efficient way possible.