I have a 3rd party lawsuit filed and workers comp, I am wondering if I should drop the 3rd party and just keep workers comp since it tax free?
As a general rule, the proceeds from a third party case are not taxible, however, your workers' compensation carrier has a lien on any third party proceeds to repay them for benefits they paid out. Usually, the third party case in New Jersey has a higher value than a workers' compensation case. But, if you fell on company property, and the company in fact was the owner of the property, then your exclusive remedy is only workers' compensation benefits. If you have a lawyer, he or she would know if you have a qualified third party case. All of these cases are fact sensitive, so someone needs to examine the ownership and facts very carefully.See question