Hello, this is Ty Wilson. I’m a Georgia Workers’ Compensation Attorney practicing law in the state of Georgia. And our video topic for today is, “Are Workers’ Compensation Settlements taxable?” This is a very quick and short NO. They are not taxable to non-taxable event.
If you’re receiving income benefits through workers compensation, there are no taxes taken out. However, you pay two thirds (⅔) of your average weekly wage. And so a big portion of that, that is missing usually is taxes. And so workers compensation payments are a non taxable event.
If you have further questions, it’s always recommended that you speak with a tax professional regarding your specific situation, as your settlement may vary and you may be in a different state. But in the state of Georgia, the settlement proceeds from a Georgia work injury are non taxable. We’ll see you on the next video. Thank you.