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

Asked 10 months ago - 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)

  1. Brendon Shawn Rhodes

    Contributor Level 11

    2

    Lawyers agree

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    Best Answer
    chosen by asker

    Answered . 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

  2. Nicholas Dale Benzine

    Contributor Level 11

    4

    Lawyers agree

    1

    Answered . 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... more
  3. Thomas L. Holder

    Contributor Level 11

    3

    Lawyers agree

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    Answered . 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

  4. John Alfred Mays Jr.

    Contributor Level 2

    Answered . 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.

  5. John M Connell

    Pro

    Contributor Level 19

    Answered . 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"... more
  6. Charles Joseph Michael Candiano

    Pro

    Contributor Level 20

    Answered . 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"... more

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