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    FAQ
      Workers' Compensation
    Must a worker pay income tax on workers' compensation benefits?
     
    Answer:

    Generally not. Workers' compensation benefits are not subject to either state or federal income tax.

     

    Sometimes, however, when benefits have been delayed for a long period of time and an employer or insurance company pays a worker interest in addition to the workers' compensation benefits, those payments of interest may be subject to both state and federal income tax.


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