SS Benefit

[New York Enrolled Agent]

Workers' compensation offset added to Social Security benefit checks.
Haven't seen this before. Is this taxable income? And why is it reported on SSA 1099?

Fair or not, the WC offset is considered part of the SS benefit and is included in income following the usual rules for SS taxability.

I'll paste a snip from the Tax Court for confirmation.

Section 86(d)(3) clearly provides that such offsets are Social Security benefits for purposes of determining gross income;
if * * * any social security benefit is reduced by reason of the receipt of a benefit under a workmen’s compensation act, the term “social security benefit” includes that portion of such benefit received under the workmen’s compensation act which equals such reduction.

[BillV]

Workers' compensation offset added to Social Security benefit checks.
Haven't seen this before. Is this taxable income? And why is it reported on SSA 1099?