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The Internal Revenue Service issued Technical Advice Memorandum T32-153-91, which determined that regular wages paid to a member while out Injured On Duty status qualifies as workmen’s compensation. As such, this income is excluded from the recipient’s gross income.
The payer would not show the income as wages and no tax would be withheld or owed.
It is used to justify that the amount paid to the public service member because they were injured while performing their duties is not taxable.
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