Skip to main content

Are worker's comp settlements or discrimination lawsuits taxable income?

Atlanta, GA |

I have both a worker's comp case and a discrimination charge pending. If there is any settlement on either or both, is that income considered to be taxable income?

Attorney Answers 6

Posted

Workers' compensation and personal injury claims are generally not taxable. However, you need to speak with an accountant or tax attorney to make sure. If part of a settlement is for lost wages, then that portion could be taxable.

Best of luck with your claims.

Sincerely,

B. Shawn Rhodes

Mark as helpful

1 found this helpful

2 lawyers agree

Posted

Workers comp settlements are not taxable. If you need any assistance with the claim most of us offer free claim consultations.

This Reply is intended to be helpful to the Asker and the Avvo Community, but it does not constitute legal advice and does not create any attorney-client relationship.

Mark as helpful

1 found this helpful

4 lawyers agree

Posted

As the other attorneys have stated, a workers' compensation settlement is not taxable. I would check with your attorney or an accountant regarding the employment case. Good luck.

Tom Holder
4045236100

Mark as helpful

1 found this helpful

3 lawyers agree

Posted

It is likely that the employment settlement is taxable so talk to your tax professional on that one

If this information has been helpful, please indicate by providing feedback that the answer was either "helpful" or "best answer" as appropriate. Legal Disclaimer: Mr. Connell is a Colorado attorney licensed in only that state. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question.

Mark as helpful

1 found this helpful

Posted

Absolutely, positively, under any circumstances you can imagine, NEITHER is taxable income.

If this information has been helpful, please indicate by providing feedback that the answer was either "helpful" or "best answer" as appropriate. Legal Disclaimer: Mr. Candiano is licensed to practice law in Illinois and Indiana. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question.

Mark as helpful

1 found this helpful

Posted

Benefits paid as a result of a Georgia workers' compensation claim are not taxable. However, if you place that money in am interest-bearing savings account, then whatever interest you "earn" is taxable.

Mark as helpful

1 found this helpful

1 comment

Asker

Posted

That is very helpful information. I had intentions to place if any settlement I receive into some sort of investment account. I am comfortable with the idea of it being taxed on income earned. Just not taxed before. Thank you.

Personal injury topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics