I have been receiving Washington state workmans comp since sept 2001 and social security disability since 2003. In the years 2018 & 2019 my w-2 from social security shows workman's comp off-set of $24,000.00 which shows up as taxable income. Workman's comp is tax exempt. I have called the social security office and stood in line at their office with no clear answers, This has put me in a higher tax bracket when I filed my tax return. Can you help me?

Hi,

I wish that I had an answer for you, but my expertise is limited to Social Security benefits and not income taxes. The workers compensation offset amount appears on your 1099 from Social Security because that information is required by the IRS. You may want to check with the IRS to see if they can explain why the offset amount is taxable if your workers compensation benefits aren't taxable.

Best, Jerry