For now, payments to injured Maryland workers are not considered taxable income at either the Maryland state level or at the federal income tax level.
Lost wage payments, also known as temporary total disability (ttd) payments are not considered taxable income nor are vocational benefits or permanency payments. Injured Maryland workers can also enjoy settlement money with little or no taxes applicable.
Tax laws, like all laws, are changing constantly so any payments received as a result of a Maryland workers comp case should be reported and discussed with a qualified tax professional. The information herein provided is not legal advice of any kind and content is for informational purposes only.