When is Your Personal Injury Settlement Taxable?
When Your Personal Injury Settlement is Taxable
Often, settlements from personal injury claims are not taxable by the state or the federal government, whether you settled out of court or brought your case before a judge. This is especially true in the state of Florida. the government also cannot tax your settlement as long as the money from it goes toward medical bills and other expenses that derived from your injury.
However, some aspects of a personal injury claim are taxable, depending on the nature of the lawsuit and the types of damages the plaintiff was awarded. Settlements from physical injury claims are non-taxable, whereas settlements from emotional injury claims are. if you won an emotional injury case, the government can tax your settlement unless you have evidence the claim was filed on the basis of physical injury as well.
Your personal injury settlement is taxable if there are damages that had to do with a breach of contract. That breach of contract must have caused your injury, and the breach of contract is the basis of your lawsuit. Punitive damages are also always taxable. if you have a punitive damages claim, your attorney will request the court to separate its verdict into compensatory damages and punitive damages. This way, you can show the IRS that part of the verdict was for compensatory damages, which are not taxable.
Anderson & Ferrin protect our clients rights by advising them of the best way to go about filing their personal injury claims and we can help you see to it that at least some of your personal injury settlement is non-taxable. We pride ourselves on personal service that includes sitting down with our clients face to face, discussing their individual situation and honestly assessing each case based on each client’s particular situation. Our personal injury lawyers handle many cases that include automobile accidents, slip and falls and boating accidents.
To learn more about how the Orlando Personal Injury Attorneys at Anderson & Ferrin can help you with your personal injury claim, Contact Us for a Free Consultation Now at 407-412-7041!