You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.
According to IRS Publication 17, “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.” We suggest looking into your favorite tax program to determine how your return will look considering the new situation. If you do that, you’ll have a clear idea of any adjustments that may need to be made to avoid any surprises next April.