Do I Have to Pay Income Tax on the Workers’ Compensation Money I Receive?
If you have been injured in the course of your employment or have contracted an occupational disease, claiming workers’ compensation can cover your medical expenses and replace lost wages. While workers’ comp is considered income in determining eligibility for other state or federal benefits, you will not be required to pay income tax on the weekly or bi-weekly checks you receive.
In this article, our Wildwood workers’ compensation lawyers discuss what benefits are offered under New Jersey workers’ compensation insurance and how it can impact other government benefits.
What is Covered Under Workers’ Compensation?
Medical Expenses
Following a workplace injury or occupational illness, you will want to be seen by a provider approved by your workers’ compensation carrier. If you choose to see an out-of-network provider, you will have to pay out-of-pocket for your medical expenses. However, in an emergency situation, your medical costs will be covered no matter which provider you see.
The following services are covered when filing a workers’ comp claim in Wildwood, NJ:
- Ambulatory services
- Hospital stays
- Physical therapy
- Physical medicine and rehabilitation (PMR) physicians
- Travel reimbursement to the pharmacy and/or doctor’s office
- Surgeries and treatments
- Ramps, handrails, widening doorways, and other home modifications
Wage Replacement
New Jersey workers’ compensation pays workers 70% of their average weekly wages, with a maximum statutory amount adjusted each year for inflation. There is a minimum and maximum rate set by statute, which is $1,159 for claims on or after January 1st, 2025.
The benefit rate cannot exceed 75% of the statewide average weekly wage (AWW) or be lower than 20% of the AWW. The majority of workers who apply for workers’ compensation receive temporary benefits. Albeit, if your treating provider determines that you have reached maximum medical improvement (MMI) or are able to return to work in some capacity, temporary benefits will terminate.
How Does Workers’ Compensation Impact Other Government Benefits?
If your workers’ compensation claim is approved, other public disability benefits may be reduced, such as Social Security disability insurance (SSDI). If you do receive workers’ compensation, your total benefits cannot exceed 80% of your average current earnings prior to your accident or occupational illness. If you are concerned about how receiving workers’ comp may impact your current government benefits, you should speak with a Wildwood workers’ compensation attorney.
How Can a Wildwood Workers’ Compensation Lawyer Help Me?
Occupational hazards are everywhere, making workers susceptible to injuries and illnesses when certain protocols are not followed. Whereas all employers must comply with OSHA standards, which protect employees from falls, pesticide exposure, and safety using machines, various reasons can cause a worker to be injured or fall ill. Thankfully, workers’ compensation insurance applies regardless of fault, allowing a safety net for workers who cannot work.
When you work with a Wildwood workers’ compensation attorney, we will investigate your matter to gather the necessary information and eyewitness testimony to support your claim. Presentation of this evidence is key to getting your claim approved. Additionally, our legal team can walk you through the types of benefits available to you to ensure that you are receiving maximum compensation on your claim.
Reach Out to a Wildwood Workers’ Compensation Lawyer Today
An occupational accident or illness can have debilitating health consequences. At The Law Offices of Matarazzo & Lubcher, P.C., we understand the stress that you are under following a work-related incident that causes you to develop or exacerbates an old injury.
If you are concerned about how workers’ comp may impact your current disability benefits, our legal team can answer any questions or concerns you may have. To learn more or to schedule your free consultation with one of our Wildwood workers’ compensation attorneys, contact us online or give us a call today.