Co-Pays, Taxes, and Other Expenses to Consider While You Receive Workers’ Comp Benefits

co-pays and taxes

After you suffer an injury at work, you will receive workers’ compensation benefits. These benefits will cover your lost wages, your related medical bills, and several other expenses. If you find yourself in this situation, and you are interested in receiving these benefits, you may wonder what financial responsibilities you are responsible for out of your own pocket while you are receiving benefits.

Virtual all sources of income or any type of financial award will be taxed. This includes lottery winnings, inheritances, and bonuses. You may wonder if taxes are also applied to workers’ compensation payments or co-pays or the treatment they receive. In most situations, if you suffered an occupational injury, you can typically receive tax-free compensation without any need to provide a co-payment at your medical appointment.

Taxes and Workers’ Comp Benefits

You don’t have to pay taxes on the benefits you receive as workers’ comp payments. However, if you return to work at a modified capacity while you are still receiving these benefits, like if you take on a role that isn’t demanding, you will have to pay income taxes. However, the benefits from workers’ comp will not be taxed even if you receive them while you are working.

Is it Necessary to Pay the Co-Pays for Your Medical Treatment Related to Your Work Injury?

While you are receiving medical care that has been employer mandated for your work injury, you will not have to pay the copayments out of your own pocket. Remember, this is only the case until you have been labeled as “healed” by your doctor or if you have achieved the “maximum medical improvement.” At this point, your treatment will usually stop.

If you continue receiving treatment at this point, you will have to cover the co-pays. This is because it was not ordered, and it will be treated as separate from the workers’ comp system.

What Non-Medical Expenses Will Workers’ Compensation Cover?

There are several peripheral costs, beyond medical bills, that will be caused by a work-related injury. For example, transportation expenses may arise after you have suffered an on-the-job accident. If you suffer a work injury, you may wonder if the benefits you receive will cover these costs, too.

According to how the law works, workers’ comp benefits are designed to cover all the expenses that are caused by a work injury, not just the medical related costs. While this is true, non-economic damages are not typically covered by workers comp benefits.

Hire an Attorney for Help

Unfortunately, when it comes to workers’ compensation benefits, what’s covered and what’s not, things can get complicated. We can also help you if you believe you deserve permanent disability benefits. If you have questions or believe that certain expenses should be covered that are not being paid, contacting an experienced workers’ compensation attorney in Florida is a smart course of action.

At Scott J. Sternberg and associates, we can help you with your workers’ compensation benefits and any questions or concerns you may have. Contact us today by calling (561) 687-5660.

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