Minnesota Workers’ Compensation Benefits are Not Taxable

Papers are stacked somewhat neatly in two piles, interweaving amongst each other.

It’s that time of year again! Tax time! This year’s tax filing deadline is April 18, 2017. If you’ve procrastinated, or you’re doing your own taxes, you may be wondering if you need to report your Minnesota workers’ compensation benefits. In other words, are your Minnesota work comp wage loss benefits taxable? The answer is NO!

You are not required to pay income taxes on your work comp benefits, regardless of whether you received them on a weekly basis or as a lump sum settlement. Minnesota workers’ compensation benefits are considered to be compensation for a personal injury under the Federal Tax Code, and therefore are non-taxable.

Other types of benefits that are payable as a result of a work-related injury may also be non-taxable, including PERA Police and Fire Plan or Corrections Plan Duty Disability Benefits, and MSRS State Patrol Plan and Corrections Plan Duty Disability Benefits.

To ensure you are maximizing your eligibility for Minnesota workers’ compensation benefits, contact Meuser Law Office, P.A. for a free no-obligation consultation. Call us today at 1-877-746-5680.