Saturday, June 11, 2011

Workers are Injured and Then TAXED

Injured workers face many challenges. The pain of being injured and the need to recover from the injury are already a lot to deal with. Financial uncertainty is also a factor, as many workers experience the anxiety of not knowing how they'll be able to cover all of their bills without a regular paycheck.

Workers' compensation and Social Security disability benefits are supposed to ease that financial strain. But those benefits don't always stretch as far as an injured worker really needs them to. For that reason, a recent decision by the U.S. Tax Court on whether workers' compensation benefits can be excluded from taxable income is of significant concern.

The court held that certain workers' compensation benefits were taxable as Social Security benefits under section 86(d)(3) of the tax code.

For rest of story see:   Read more: http://www.disabled-world.com/disability/legal/tax/taxability.php#ixzz1P1h6NzJ7

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