In the state of Tx, Was my self insured employer supposed to tax my WC income for the year?
I was injured as well as on WC for 90% of 2016. My W2 shows the full year of wages was taxed including WC. Now I'm confused if I am assumed to claim my WC income on my tax return.A: No, wc benefits AREN'T taxable. Your employer is wrong is it paid you wc benefits. If they somehow withheld taxes (ss and FICA tax as well) it owes that cash back to you at once! However, if it was a wage continuation program, rather than TIBs payable under the wc Act, that is an issue that is totally different. The determining factor is whether your self-insured employer paid TIBs and/or IIBs or a wage continuance to you. A hint would be if you're a salaried employee and received the same weekly payment following your injury as before. TIBs are calculated based on your own average weekly wage for the preceding 13 weeks before your injury and multiplied by either .70 or .667 depending on your hourly rate.