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Although most income you receive is taxable and must be reported on your federal income tax return, there are some instances when income may not be taxable. Worker's Compensation benefits are not taxable (with a few exceptions) and would most likely not be shown on your tax return.
Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act.
The exception is if any retirement plan benefits you receive were based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury.