Do you have to pay taxes on death benefits through workers compensation in Texas?

[rumford]

My kids father passed away this past April while he was working. My children are receiving death benefits from workers compensation and social security. Do I need to take out taxes for the death benefits from workers compensation? We live in Texas.

[geol19]

Those funds are not taxable to you. It is unlikely that they would be taxable to the children. The only way that they would be taxable to the children is if the kids had a great deal of income from some other source in which case a portion of the SS income would be taxable. That is very unlikely.

[karlitis]

Workers Comp benefits are not taxable. Social Security may be taxable depending on your total income.

Unrelated suggestion: If you itemize your deductions, add workers comp to your other income to calculate your sales tax deduction. It may not be taxable income but it is included in what you pay sales tax from.

[wattekinson86]

Workers Comp benefits are not taxable. Social Security may be taxable depending on your total income.

Unrelated suggestion: If you itemize your deductions, add workers comp to your other income to calculate your sales tax deduction. It may not be taxable income but it is included in what you pay sales tax from.

you may be receiving the money because the children are minors but if you will notice the year end statements, if any are received, will be in the SS#'s of the children, not yours
this is not taxable to you, it is for the benefit of the children, not you

[larenzo]

Death benefits are not taxable.