Declaring income while on OWCP wage loss

by | May 6, 2016 | 10 comments

Let’s say your claim has been approved and you are receiving wage loss through OWCP. You have an obligation to let OWCP know when you make any income. It’s EXTREMELY important you do so as any problems here can go from being a civil matter to a criminal one quickly.

What counts as income may surprise you as well. There is a case where a person would remove snow and receive tips and got in trouble for not reporting the tips as income. Things get a bit tricky when a spouse has a business as well.

My suggestion is whether you believe something is income or not, you should send in any money coming in to OWCP so they are aware of you making money. You should also have proof that you sent this information in. If you don’t believe the money should be deducted from your wage loss because it’s not income than you can have a fight about it with the claims examiner (we can help with that) but at least there won’t be any criminal situation if you have are up front with everything.

We’ve seen too many criminal cases where an injured federal employee pleads guilty to avoid a possible stronger sentence at a trial when they never intended to do anything wrong. Please be careful and be on the conservative side when declaring income.

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10 Comments

  1. George Peter

    If I buy and sell a stock and make a profit while receiving OWCP monthly payments do I need to inform OWCP?

    Reply
    • admin

      In general, if this is a capital gain, this isn’t what they are looking for when it counts as income, It may depend on the type of trading you are doing. HOWEVER, I find it is best to always declare this kind of financial information to OWCP so you don’t risk anything. If OWCP decides to act upon the information you give, you can always fight them.

      If you don’t declare this information and they think you are hiding something from them, the penalty can be great.

      Reply
  2. Dawn

    If I was in a car accident while receiving compensation and win a lawsuit for pain and suffering, do I need to report the money I am awarded?

    Reply
    • admin

      Yes, it is very important to let them know about a third party case. In fact, you should be working with the Department of Labor regarding that case to make sure they get paid whatever they are owed from a third party settlement/award.

      Reply
  3. Dawn

    I understand declaring all income to avoid problems, but why would they be owed anything? It has nothing to do with my workers compensation injury. I was injured at work three and a half years ago and have been unable to work. The car accident was 8 months ago.

    Reply
    • admin

      I misunderstood and thought it was related. Yes, if the accident is from a non-work related incident, then they would not be owed any money from the car accident.

      Reply
  4. MS WHITE

    I WAS INJURY WHILE WORKING FOR THE POSTAL SERVICE I HAVE OPEN OWCP CLAIM BUT I RESIGNED FROM THE POSTAL SERVICE AND OWCP STILL PAYS FOR MY MEDICAL TREATMENTS BUT DUE TO MY RESTRICTIONS FROM INJURIES NO ONE WILL HIRE ME. WHAT SHOULD I DO SOMEONE PLEASE HELP ME I HAVE 4 KIDS TO TAKE CARE OF.

    Reply
    • admin

      Contact my office and we can see if we can help.

      In general, resigning can have some negative impact on your workers compensation benefits. It is always best to speak to an attorney before resigning with an open workers compensation claim.

      Reply
  5. Dennis malby

    Dear sir.
    I have been on federal work comp. since 1991 due to a injury while working for the army as a civilian, I am 76 years old. I gave my wife an nfa registered m16 15 years prior to our marriage but did not transfer the gov. registration or pay for the $200 tax stamp.we’ve been together 40 years approx 20 of those years common law. She just sold it and received $20.000 for it. When I report it in january, will this affect work comp. income. And in what way?
    I would appreciate any info.
    Thank you
    Dennis

    Reply
    • admin

      This is a tough one and I could see two arguments either way. These things are not always black and white. I would 100% report this, as you plan to. Having said that, my inclination is that this will NOT affect your wage loss. If they try to reduce your wage loss, contact us and we will do what we can in this matter.

      Reply

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