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Reporting Workers' Compensation Claim Payments: Are They 1099-MISC Reportable?

January 15, 2025

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Q. We pay another company to handle our workers comp claims. We pay a fee per claim, along with the claim payments and any loss invoices. Would any of these payments have to be reported in Box 6 of 1099 MISC as medical payments? A. (Answered by IOFM's third-party tax expert) Per Publication 525 from the IRS, workers compensation payments are generally not taxable, and thus no 1099 would need to be issued. From Publication 525:"Amounts you receive as workers' compensation for an occupational…

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