KRS 304.39-120: Calculation of net loss.

(1) All benefits or advantages a person receives or is entitled to receive because of the

injury from workers' compensation are subtracted in calculating net loss.

(2) If a benefit or advantage received to compensate for loss of income because of

injury, wheth er from basic reparation benefits or from any source of benefits or

advantages subtracted under subsection (1), is not taxable income, the income tax

saving that is attributable to his loss of income because of injury is subtracted in

calculating net loss. Subtraction may not exceed fifteen percent (15%) of the loss of

income and shall be in a lesser amount if the claimant furnishes to the insurer

reasonable proof of a lower value of the income tax advantage.