04-10-2011, 03:54 PM
My husband injured his arm at work in 2001. He was denied wc, filed an appeal and won. He was paid a partial perm. disability payment for the % loss of use of his arm. He returned to work in a job that met his physical restrictions on his arm. In 2009 he returned to work after an extended medical leave for surgery. He was placed on a different job that reaggravated his arm injury. The company put him out of work until a job that met his restrictions on his arm was available. He was out of work for over a year. For the first 12 months he received workers comp payments. After the payments stopped, he was told that he was paid supplemental workers comp and that was only paid for 1 year. He has now received a w2 reflecting that his workers comp payments were taxable. Everything we understand about workers comp is that the payments are not taxable. I did read that they would be taxable only if they were paid under a private agreement with the company not covered by workers comp statue. I don't know what that means. Was he not eligible to receive workers comp under the VA wc statute when his arm was re-injured? The company claimed they did not have a record of his permanent restrictions. The doctors office had to send them their reports from 2002 again.