The filing deadline for the 2021 tax year is April 18, 2022. With tax season upon us, you may wonder if you will be obligated to report Minnesota workers’ compensation wage loss, permanent partial disability, or a settlement received in 2021. The answer is no, you are not required to pay income taxes on your work comp benefits, regardless if you received payments on a weekly basis or as a lump sum settlement.
If you prepare and file your own income taxes it’s important to understand that Minnesota workers’ compensation benefits are considered to be compensation for a personal injury under the Federal Tax Code and are therefore non-taxable. Other types of benefits that are payable as a result of a work-related injury may also be non-taxable, including PERA/MSRS Police and Fire Plan and Corrections Plan Duty Disability Benefits.
Contact Meuser, Yackley & Rowland, P.A. for a free, confidential, no-obligation case evaluation and consultation. We can explain what rights you have and make recommendations to you in terms of how to best protect your rights to those benefits. The knowledgeable attorneys at Meuser, Yackley & Rowland take time with each client to help determine which benefits under the Minnesota Workers’ Compensation Act you are entitled as well as discuss PERA Duty Disability benefits and Healthcare Continuation Benefits under Minnesota Statute §299A.465. Call us today at 1-877-746-5680.