Are TTD Payments Taxable Income
This is for federal and Oklahoma state taxes. Are Temporary Total Disabillity payments taxable income?
I have been receiving TTD payments from worker's comp since September. I do not receive money from the federal or state gov't. I do not receive money from Social Security. I receive 70% of my gross weekly wage from worker's comp. My W2 from my job obviously does not include this money since Sept. I am having my taxes done next week. My wife seems to believe this is supposed to be taxed. She thinks I'm supposed to get a W2C from my work. She does payroll for a living so this is an area she thinks she knows but she keeps saying it's short term disability and I'm supposed to keep back my own taxes. I think maybe she's confused about how I'm being paid. I've read TTD isn't taxed because it isn't considered "earned income".
So am I supposed to show the TTD payments as taxable income and pay taxes on it or not?
Insurance Adjuster - Auto Property Damage