For the most part, no, your VCF award is not taxed and other income is not deducted from your award. VCF payouts are meant to compensate you for pain, suffering, and the expenses you’ve already laid out for your treatment, and are therefore not considered “income.” There is, however, one circumstance in which this issue may come up.
If your “other” income is disability payments related to your WTC certified condition – either payments you are entitled to or have already received – the VCF’s statute requires the program to deduct that income from your lost income award. The deductions are only made if the disability payment is related to your 9/11-linked health issue. Disability payments made for unrelated health concerns will not be deducted from your VCF award.
If your illness or injury is serious enough that you qualify for disability payments, it is generally still worth applying to the VCF. Your payout will likely outstrip these offsets, so don’t let this policy stop you from getting the money you deserve. Contact our office to discuss your options and how to get the ball rolling.