Question about taxes

[ksgirl]

I know I am really early here, tax time is still a few months away. I was just wondering if wc pay is included in the federal tax return. I know we arent taxed on it while we receive it, but is it reported as taxable income on our returns or is there a place to include it without it being taxed? It does count toward our adjusted gross income doesn't it?
I just gor to wondering about all of this. I know some of you have dealt with wc for years, so I thought someone would know.
Thanks everyone!

[Still in Limbo]

Workers compensation payments are non-taxable, that's why they give you a Percentage of you Average Weekly Wage, (Example 662/3%). So you have nothing to worry at tax time! I Hope this has helped, and Have A Great Day!!

[ksgirl]

Thanks Limbo! I am glad to know I don't have to worry about paying taxes on it. So, is there a place on the tax return where it goes toward the adjusted gross income? Or does it not count toward the AGI?

[1171]

The IRS does not consider it "Earned Income"

"To claim the earned income credit, you must have earned income. For the year you are filing, earned income includes all income from employment, but only if it is includable in gross income. Examples of earned income are wages, salaries, tips, and other taxable employee compensation. Earned income also includes net earnings from self-employment. Earned income does not include amounts such as pensions and annuities, welfare benefits, unemployment compensation, worker's compensation benefits, or social security benefits."

http://www.irs.gov/taxtopics/tc601.html

p.s.
confusedd and star are welcome to this information as well even though they don't want to deal with anonymous sources.....

[ksgirl]

Thanks 1171. That's exactly what I was looking for. I don't know why I didn't think to go to the irs website. Yes I do, I don't seem to think very well anymore!

[1171]

you're welcome. we all have good and bad days - that's one reason why we're stronger in a group then doing this by ourselves.

[ksgirl]

You are so right. I would have been lost without this group of wonderful, caring and informative people. I had never had to deal with an on the job injury before. I had no idea how workers comp worked or what my rights were and the Kansas site isn't very easy to read. Without all of you, I would have been in a lot of trouble when it comes to how all of this works.
Thanks to everyone on this site!

[Bummer Knees]

Your right ksgirl, little information is given on the Kansas site.

Maybe it is on purpose.