Are Workers Compensation benefits taxable in Pennsylvania?
It's that time of year when we either file or begin preparation to file our state and federal tax returns. That means it is an appropriate time to address the taxation issue of workers compensation wage loss benefits. So are your weekly wage loss benefits taxable? The answer is NO. Pennsylvania does not tax as income workers compensation benefits. According to IRS Publication 907, your workers compensation weekly wage loss benefits are not taxable at the federal level either.…