Hello everyone, tax time is coming and need help regarding my taxes. I'm a fireman that got hurt on the job. I've been off since june of 08. thankfully i've been getting paid like i was still there except for the overtime i get due to (FSLA). I'am also getting taxed on my check. I've been told by many that money earned on workmans comp should be tax free. Is this correct? Am I a different exception? I also know that at the time i recieve my W-2 i will be getting an additional letter from the city stating that i made so much in 2008 while on workmans comp./disability. It also states that due to their system restrictions and IRS requirements, automatic data processing is unable to list my disability pay seperately on my W-2. I was told i need to adjust my taxes according to what the city's letter states. I dont want to do anything illegal so any information is great. Thank you.