Receiving a workers’ compensation settlement can be a great relief, especially if you were struggling to make ends meet in the aftermath of a work injury. However, you might now be wondering whether your settlement is taxable in Montana, and the team at Glacier Law Firm can help you answer this and many other important questions. These attorneys tackle every case using a combination of expansive experience and personalized care. As a result, clients in Kalispell, MT, know their best interests will remain intact throughout a case.
Taxes & Workers’ Compensation Settlements
If you’ve been injured during the course of work, workers’ compensation is intended to offer financial coverage to help you on the road to recovery. While compensation is considered a form of income, it’s not usually taxable. In fact, most workers are not required to report workers’ comp on their tax returns. That means for the vast majority of people injured as a result of work, any compensation received will not be taxed.
However, there are exceptions. The most common reason why a settlement would be taxed has to do with long term disability. If a worker suffers from ill-health for an extended period of time due to either injury or work-related illness, that worker might also be eligible for other types of assistance. Social Security disability benefits are one example of this, and in this case the employee receiving benefits might be taxed. Tax would be incurred on the difference between the payouts, which means that only a portions of the compensation benefits would be taxed.
If you need assistance making a workers’ compensation claim, Glacier Law Firm offers the benefit of more than a decade of experience. Learn more about the full range of legal services currently offered by visiting their website. You can also call (406) 552-4343 to schedule your initial consultation with an attorney in Kalispell.