Are workers comp. settlements taxable and do i need to declare them as an asset to the IRS?

In California, workers' compensation settlements are tax-free.

No. They are NOT taxable and do NOT need to be reported to the IRS in ANY state.

The Golden answer is "probably not." Recoveries for physical injuries are typically tax-free, and TTD/PD payments are also treated as tax-free income. If you settled a discrimination claim under LC section 132a, the portion of recovery attributed to wages would be taxable. If you did not have a 132a claim, you should be OK.

Per Internal Revenue Code 104(a)(1), the anawer is no; however, be sure to consult your attorney and/or your accountant to verify. Below is IRC 104(a)(1): "Except in the case of amounts attributable to (and not in excess of) deductions allowed under section 213 (relating to medical, etc., expenses) for any prior taxable year, gross income does not include— (1) amounts received under workmen’s compensation acts as compensation for personal injuries or sickness;" Marc Lazarus www.russellandlazarus.com

No, but if you are also receiving Social Security Disability and they reduce your benefits due to the settlement you will still be taxed on the SSD benefits you were receiving before. Talk to a Social Security provider and your tax preparer to reduce that impact. But otherwise, this is a non-taxable event

California Worker's compensation permanent disability and temporary disability payments are tax free.

They are no taxable, but you should speak with your attorney and accountant, to confirm what your state rules are in regardless to listing the money on any return.