The Internal Revenue Service (IRS) generally cannot take a workers’ compensation settlement, as workers’ compensation benefits do not qualify as taxable income. While the IRS might garnish wages or take money you have already earned, settlements for injured workers are generally off-limits. Exceptions may exist, though, so it’s worth consulting with an Atlanta workers’ compensation lawyer about your specific case.
A workers’ compensation settlement can be the financial safety net you need, and its tax-free nature only enhances its value. If you were injured or sickened in circumstances related to your job, allow an attorney to pursue a fair settlement for you.
Tax Protection Is One of Many Benefits of Getting a Workers’ Compensation Settlement
Anyone eligible for a workers’ compensation claim should pursue the money they deserve because:
The Cost of Work-Related Ailments Can Be Devastating
Those who have not lived through a work-related injury or illness may not fully recognize the financially crushing impact of:
- Losing your income without warning (even if you have savings, you should not have to deplete them when an injury or illness happens)
- Medical bills (which may continue to pile up without an end in sight)
- Bills for rehabilitation, physical therapy, and other steps necessary for you to recover
Workers’ compensation laws exist to protect you from suffering under the financial burden of these expenses.
Workers’ Compensation Beats Other Means of Financial Support
If you face expenses because of a work-related ailment, consider what you might have to do if you don’t secure a fair workers’ compensation payment. Alternatives might include:
- Accruing debt to cover expenses
- Spending an emergency fund
- Cashing out investments
- Other undesirable and unnecessary financial measures
Every alternative to a workers’ compensation settlement comes with significant risks and downsides.
You’ve Worked Hard, and Now It’s Time to Collect Benefits You Deserve
Those covered by workers’ compensation insurance are entitled to its benefits. You’ve earned the coverage through your work, and you should have no qualms about accessing that coverage when you need it.
For a free legal consultation, call (404) 888-8888
The IRS Says Settlements Are Not Generally Taxable
If you want concrete proof that your workers’ compensation settlement is not subject to taxation, look to the IRS itself. The specific statute that supports this is:
- 26 USC §104, which states that gross income does not include damages received due to “personal physical injuries or physical sickness.”
Just as importantly, the IRS also cannot put a lien on money you receive from a workers’ compensation settlement. If you owe back taxes or have other financial obligations to the IRS, money from your settlement should be safe.
Compensation received through workers’ compensation insurance may be protected from taxation and confiscation because:
- The money is considered essential to your survival, which can protect you if the IRS is seeking money for back taxes or other liabilities.
- The money is not considered income, which is generally subject to the IRS’ taxation.
An Atlanta work injury lawyer will evaluate your personal circumstances and explain any IRS-related considerations you should be aware of.
Injured Workers May Be Taxed for Settlements in Some Cases
In some instances, money received through workers’ compensation is taxable, and this may include:
- Money received through Supplemental Security Income (SSI)
- Money received through Social Security Disability Insurance (SSDI)
- Settlement-related money that exceeds the IRS’ threshold for non-taxable compensation
Anyone who has paid taxes knows the IRS’ rules are complicated. Allow an Atlanta personal injury lawyer to explain everything you need to know in a digestible manner you can understand.
Before Worrying About Taxes, Ensure You Get a Fair Workers’ Comp Settlement
While taxes are always an important consideration, you should have a more pressing concern. You must ensure you receive the workers’ comp benefits you deserve.
If you’re intent on receiving fair compensation, hire an Atlanta workers’ rights lawyer to represent you because:
- Workers’ comp insurance providers do not enjoy paying claimants and may use several tactics to undermine your case.
- It’s not always obvious how much money claimants deserve, and your lawyer will be certain of their settlement demands.
- An attorney’s help will allow you to heal and put your life back together (and return to work as soon as possible, if possible).
Our personal injury attorneys focus on several practice areas. However your ailment happened, and whatever losses you face, our law firm is qualified to represent you.
Complete a Free Case Evaluation form now
How an Atlanta Workers’ Compensation Attorney Will Fight for a Fair Lump Sum Settlement
Ours is a full-service personal injury law firm that exists to impact our clients’ lives positively. We will pursue a fair workers’ comp lump sum payment for you by:
- Forming a personalized case strategy and explaining it to you
- Documenting each of your covered losses
- Evaluating your employer’s workers’ comp insurance policy
- Negotiating for a settlement with the insurance company
- Handling all other case details and taking legal action, if necessary
An Atlanta workers’ compensation attorney will protect you, implement your feedback in the case, and pursue the settlement agreement you deserve.
Your Lawyer Will Account for All Your Covered Losses
Your lawyer must identify each of your covered losses before securing a fair settlement. Those losses may include:
- Lost income
- Medical expenses
- Rehabilitation costs
- Vocational retraining costs
Let our team document the harm your work-related ailment has caused. Our workers’ comp lawyers will work hard to win big for you.
Click to contact our personal injury lawyers today
Call Us Today for Your Free Consultation About Hiring an Atlanta Workers’ Comp Attorney
Bader Law Injury Lawyers has recovered over $30 million for clients, and we continue to add to that sum. You will work directly with your attorney, and we will lead your case in a manner you can be proud of.
Call Bader Law today for your free legal consultation about hiring an Atlanta workers’ compensation attorney.
Call or text (404) 888-8888 or complete a Free Case Evaluation form
