Taxes and Illinois workers' compensation
With the caveat that most Illinois work comp law firms are run by honest people, allegedly one near Rock Island isn't.
A caller claimed to me that this person was handling his workers' compensation claim and was taking out taxes from the payments he was getting.
I looked up this attorney at the ARDC which is the disciplinary commission for IL attorneys. Surprise, he's being investigated for fraud!
Either way, there are no taxes on workers' compensation benefits. No state taxes and no Federal taxes. When you settle your case you should get a nice pink contract. You can hold on to that forever as proof that the money you received is tax free.
This is probably the worst thing I've ever heard a lawyer being accused of. Part of me thinks the client must have been confused and that the lawyer was just really taking 20% of the TTD checks. Technically that is allowed although we only do it typically if we go to trial to get it and we certainly don't take 20% of future TTD benefits.
Big picture since I can't imagine many if any attorneys are saying there are taxes on work comp cases, don't hire a lawyer with a bad disciplinary history and don't hire someone that doesn't primarily handle work injury claims.
We are workers' compensation attorneys that help people with Illinois work injuries anywhere in IL via our statewide network of attorneys. Contact us and we will answer your questions or find the right lawyer for your situation.
