Do I need to report workers' compensation?
Updated: 1/16/2013
Article ID: IAS10259
You must include workers' compensation (L&I, Labor & Industries, state industrial) in income up to any amount you deducted for medical expenses related to that claim. If you did not deduct medical expenses, do not include the workers comp for the occupational sickness or injury in your income. Wages or retirement plan benefits are taxable.