IRS tax filing deadline is April 15, 2013

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Get Help From our Michigan Workers’ Comp Lawyers Today
You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and we pride ourselves on providing you with care, trust, and responsiveness.

Michigan workers comp lawyer discusses tax issues for individuals who receive a lump sum cash settlement.

We are frequently asked about the tax consequences of a workers comp settlement. Our clients always want to know how much they need to put away to protect themselves.

Here is some information about workers comp and taxes.  Remember, every situation is different and always seek the advice of a tax professional.

Settlements are income tax free

You should owe no income tax on your Michigan workers comp settlement. However, retirement plan contributions or other payments made by your employer could be taxable. Avoid this trap by meeting with a tax professional.

Eligibility for certain low income programs could be affected

It is possible that a lump sum cash payment could end your entitlement to certain government programs. Medicaid, SSI, and food stamps are some of the benefits that could be affected. Talk with an experienced lawyer before you settle a workers comp case.

Don’t forget your W2 or 1099

It is possible that you worked during the same calendar year as your settlement. This income could be taxable. Make sure that your former employer provides the necessary tax information so you don’t slip through the cracks. A simple telephone call could save you much stress and anxiety.

Call (855) 221-2667 for a free consultation with a Michigan workers comp lawyer. Let our experience help you get the best possible recovery.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.

Related information:

Pros and cons of settlement and how to get the most money for your case

 

04/01/2013

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.