If you receive compensation from a personal injury settlements or lawsuit, you probably have questions about the tax liability of the money you received. Whether you must state the settlement proceeds as taxable income will depend on the specific circumstances and facts of your case. Generally speaking, yes, your personal injury settlement may be taxed…
The majority of the work is completed once you resolve a personal injury case. You should receive a fair settlement amount from an insurance company, but you must not forget about possible taxes related to your personal injury settlement. It is important for you to speak with an attorney about the possible tax liability you may…
If you sustained serious injuries in an accident due to someone else’s negligent or reckless actions, and try to deal with the personal injury claim on your own, expect to deal with the liable party’s insurance provider. Should I accept a personal injury settlement is a question to ask yourself after you know how insurance…
If you have back taxes, yes—the IRS MIGHT take a portion of your personal injury settlement. If the IRS already has a lien on your personal property, it could potentially take your settlement as payment for your unpaid taxes behind that federal tax lien if you deposit the compensation into your bank account. Likewise, even…
Figuring out how much money fairly represents your damages or losses following an accident could be immensely tough. There is no special formula you can use to calculate the right amount because every personal injury claim is different. This means that there’s really no answer to the question, What is the average payout for a…
If you are planning to file a personal injury claim after you’ve sustained serious injuries due to another party’s negligent actions, you’re probably thinking about how much your settlement is worth. Pursuing compensation for your injuries is mainly about justice, but it’s likewise about the money you can use for your losses. There’s generally no…
As we all know, the Internal Revenue Service likes to get its piece of every bit of income you make. The question, is a personal injury settlement taxable, often comes down to whether money or assets you receive is “income.” The IRS defines income as compensation for services, including wages, fees, commissions, and similar items….
If you have been awarded a settlement in a personal injury lawsuit, you may be asking, How are personal injury settlements paid out? Essentially, you have two payment options – a lump sum or payment over time. There are a number of considerations that go into this choice, so it is best to consult with…
When someone is injured in an accident, a personal injury attorney can file a claim for damages on behalf of the victim or the victim’s family. In around 95% of cases, a personal injury lawsuit never goes to court but instead is settled for an agreed-upon amount even before a lawsuit is filed. This is…
How Are Personal Injury Settlements Taxable in PA and NJ? Tax season is here, and you might be wondering, Are personal injury settlements taxable in PA and NJ? The answer is both yes and no. Money that is received in a court settlement is usually considered income and is therefore taxable. However, personal injury settlements…