What are the tax implications for receiving Workers’ Compensation for a Montgomery County worker?

It is tax time.  Which stinks.  But, this is an important questions and one that should come from the IRS mouth:

“Amounts received for occupational sickness or injury are FULLY EXEMPT if paid under a workers’compensation act or statute in the nature of a workers’ compensation act.  This exemption also applies to your survivors.  The exemption, however, does not apply to retirement benefits plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury.”  

 Of course, it is important for you to discuss these issues with your Montgomery County accountant.