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I've Been Paying Taxes On, Upkept, and Justia Ask a Lawyer 2019

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another big one is hey if I get a lump sum let's just say you know I got settled for 200 000 am I gonna get taxed on this money what does that look like for me so workers comp is supposed to be a benefit that's not taxed in California it's not actually income it's it's considered a personal injury award and so it is non-taxable both at the state and federal level not a CPA I've never worked for the IRS but that is how it is it's also typically exempt from bankruptcy as well no yeah you have to declare it you can't hide it but you know if you tell the bankruptcy trustee that hey you know I've got this work comp settlement or it's coming and it's going to be X Y and Z dollars it's usually excluded it really isn't designed as income it's not some benefit you got it's not something that you earned or worked for it's designed to compensate you for medical issues an

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