Workers’ compensation is both a federal and state program which provides financial coverage for lost wages, medical bills, and other expenses to people who have been injured while on the job. If you are receiving or have received workman’s comp, you may be wondering whether the money you’ve received is taxable or not.
The answer is that it’s complicated. Let’s talk about the various factors involved in workers’ comp and when it may be taxable, and where you can go in the Austin area for world-class physical therapy to help you recover as quickly and effectively as possible after suffering a work-related injury.
How Does Someone Qualify for Workers’ Compensation Benefits?
To begin a workman’s comp claim, the injury must be reported to the employer within 24 hours. The worker must then be medically examined, and proper documentation must be filed with the state of Texas.
You will want to make sure that any medical care, including the initial assessment, are all covered under either your health insurance plan or under your employer’s coverage for workers’ comp purposes. This includes any physical therapy, rehab, and occupational therapy you receive while you recover from your on-the-job injury.
What Does Workman’s Comp Pay For?
Depending on the type of injury, its severity, the extent of disability caused, and your return-to-work status, workers’ compensation pays for various costs you or your family may have incurred as a result of the injury. This can include lost wages, medical bills, and even burial and death benefits for workers’ families as warranted.
Payment of workman’s comp may be temporary or long-term, depending on the kind and extent of the injury and the disability it caused.
When Are Workers’ Comp Benefits Taxable?
If an injured worker also receives Social Security Disability and/or Supplemental Security Income, they may have to pay taxes on that specific compensation. However, most individuals who receive payment from workman’s comp do not make enough money to pay income taxes – either state or federal.
That said, it is in your best interest to discuss this with an accountant, such as a CPA (certified public accountant), in order to make sure that you pay anything that is required. You do not want to incur financial penalties later.
Additionally, some injured workers can return to work on a limited basis. A worker may be assigned different and/or lighter-duty work than they were performing prior to the injury, and the worker may also still receive a certain amount of workers’ compensation benefits along with wages earned from the different or lighter-duty work.
Workers’ Compensation Physical Therapy in Austin, TX
Our team at Endeavor Physical Therapy & Wellness in Austin, Texas, helps with the paperwork, deadlines, functional capacity evaluations (FCEs), and development of goal-oriented programs which help workers complete their workers’ compensation claims and return to their jobs.
We are experienced in interacting effectively with the city of Austin, the state of Texas, employers, and insurance companies in order to help you get the proper workman’s comp coverage after you’ve been injured on the job. If you have questions about your claim status and benefits, we want you to get the answers or we will direct you toward someone who can assist you.
If you are looking for a physical therapy team who can help you with a workers’ compensation claim, contact us today at (512) 213-1092 or request an appointment via our online form now. We have convenient locations in Austin, Round Rock, Bee Cave, Hutto, Pflugerville, Manor, and Cedar Park, and we look forward to serving you!
