Georgia Workers' Compensation Lawyer Blog

Unless your workers' compensation payment reduces your Social Security benefits, the amount paid pursuant to a settlement or other judicial award are NOT taxable income, per IRS Publication 525. If your Social Security benefits have been reduced because of your workers' compensation benefits, only that portion of your workers' comp benefits is taxable.

In addition to settlements, TTD (temporary total disability), TPD (temporary partial disability, and PPD (permanent partial disability benefits are all workers' compensation benefits that are not taxable, subject to the exception mentioned above.   

Feel free to ask additional questions to my Atlanta law office:

Moebes Law, LLC
3535 Piedmont Road NE
Building 14, Suite 410
Atlanta, GA 30305
(404)354-5432

Certainly, living off of 2/3 your pre-injury wage can be difficult, especially if you used to make more than $750/week and are stuck at the maximum workers' compensation rate in Georgia of $500/week. There are a couple of options you can employ to try and get some assistance.

First, there are several companies that offer very high interest loans for you to borrow against your future permanent impairment rating, future settlement, or future verdict. I don't recommend using this option unless you are about to lose your home or have other dire financial needs that must be addressed quickly, despite the fact that you will likely owe close to twice the amount you borrow after interest and fees are added to the total.

The better option is to file a WC-25 and request a lump sum advance on your future permanent partial disability (PPD) rating.  In order to use this option, you need to have been on temporary total disability (TTD) benefits for 26 weeks (6 months). Normally, the workers' compensation insurance adjuster (or attorney) will agree to this if your request is reasonable when compared to your injury and likely PPD rating. 

If they do not agree, you can file the form WC-25 with the State Board of Workers' Compensation, wait 15 days for the other side's objection, and then see if the Administrative Law Judge grants you an advance.  Feel free to contact my Atlanta law office for questions on Georgia workers' compensation law related to lump sum advances.

Your weekly check will normally be 2/3 of your average weekly wage. However, there are caps on this. So, if you make more than $750 per week (or $39,000 per year), you will not be able to get 2/3 of your usual weekly wage in workers' compensation benefits in Georgia. You'll get $500/week. If that frustrates you, contact your local state legislator about raising the maximum rates.

Certainly, being on workers' comp disability can be frustrating if $500/week is less than 2/3 of your weekly income. The benefits are not taxed, however. If you have additional questions about Georgia workers' compensation law, feel free to call Moebes Law, Atlanta workers' compensation lawyers.

Per IRS Publication 525, Temporary Total Disability (TTD) benefits in Georgia are not subject to income tax.  Neither are Temporary Partial Disability (TPD) benefits and Permanent Partial Disability (PPD) benefits.  Wasn't that simple? 

Have more questions about Georgia workers' compensation law?  What about questions involving law and finance?  Contact the Atlanta workers' compensation lawyer and Buckhead financial counselor who authors this blog!

Or, continue thrashing about in the dense undergrowth of ignorance if you prefer.