Are Pennsylvania workers’ compensation benefits taxable?
Pennsylvania injured workers may receive wage loss benefits when out of work due to a work injury. Many workers’ compensation cases also end in a settlement, where the injured worker receives a lump sum amount to settle their claim. This is the time of year where I get questions from clients on whether their weekly wage loss checks and their settlement funds are considered taxable income. The answer is NO. Workers’ compensation benefits are not taxable at the federal or…