“Will I Have to Pay Income Tax on This Money?”
Are you worried about the risk of being audited if you don’t claim your workers compensation settlement on your income taxes?
Did you already file your income taxes without this important information and are concerned?
Do you have questions about how to report your income correctly on your tax return after receiving a workers compensation settlement in the last year?
According to the IRS, you don’t have to pay income taxes on benefits paid under workers' compensation in the state of Colorado. If your tax adviser wants to know the amount, you can explain that the benefits are non-taxable income. Of course, consult your accountant with tax questions to avoid additional liability and how to report as non-taxable income.
IRS Publication 907 states: "The following payments are not taxable ... Workers' compensation for an occupational sickness or injury if paid under a workers' compensation act or similar law." It’s common to be concerned about filing your income taxes correctly. It can be a stressful time of year, so our attorneys want to relieve some of that pressure and help you in any way we can.
How to Contact Experienced Colorado Workers Compensation Attorneys!
If you have questions about taxes and workers' compensation, speak to our experienced Colorado workers compensation attorneys today! We make sure you and your case get the attention you deserve!
The initial consult with our office is free! If you have a question or concern about your claim for Colorado Workers' Compensation, please set up an appointment with us to discuss your rights.