Are South Carolina Workers’ Comp Benefits Taxable?

While you will only receive two-thirds of your full wage from the South Carolina workers’ compensation system , all workers’ comp benefits are completely tax exempt, meaning you will not have to pay state or Federal income taxes on the benefits.

How do you get benefits?

You can begin receiving temporary total disability payments, equaling two-thirds of your wage, including overtime, bonuses and tips, after your on-the-job injury or illness has kept you from working for seven days.

If your workplace injury may permanently keep you from working, you could qualify for permanent total disability payments for up to nine and a half years.

If you go back to work

Sometimes, doctors will release injured workers back to their jobs for light duty. If this happens, you will probably begin working part time, possibly in a lower-paying position and South Carolina workers’ compensation should make up any difference between the wage you’re earning and two-thirds of your previous wages.

If you are in this situation, you may have to pay taxes on the wages you earned from your employer, but may not have to pay taxes on any additional compensation coming from workers’ comp.

Medical benefits

South Carolina workers’ compensation should cover all medical expenses related to your workplace injury and could also reimburse you for long drives to visit doctors. Those benefits are not taxable.

Getting the help you need

Regardless of your tax concerns, it’s essential that you get the medical help you need after a workplace injury. Report your injury to your employer and consult with an attorney if you have been hurt on the job.

You only have one opportunity to get the compensation you will need to manage your workplace injury for the rest of your life. Don’t let it pass you by.

The experienced legal team at George Sink, P.A. Injury Lawyers offer a free case evaluation that will help you understand your rights as an injured worker and your options. We can meet you in your home or anywhere in South Carolina; our offices are located in North Charleston, Columbia, Greenville, Orangeburg, Walterboro, and Moncks Corner.