The end of a personal injury claim brings with it some relief and much-needed compensation in the form of a settlement. This is an amount that was agreed upon by both parties or the court, meant to compensate the injured party for the damages they suffered. That said, this relief is often overshadowed by questions and anxieties regarding taxation, and whether personal injury settlements are taxed and at what percentage. It is important to note at this juncture that personal injury law is meant to make a person whole again, but it does not overlook legal requirements for every citizen, with one of these being the payment of taxes.

That said, it isn’t as simple as it may seem, as parts of your settlement may be taxed, while others may be paid out tax-free. Whether you got in a car accident and suffered injuries due to the negligence of another party, or slipped and fell at a Walmart, Papa John’s, or at any mall store, or even got injured while on a boat or yacht due to the owner’s negligence, you deserve compensation as long as you can prove that the other individual had a duty of care towards you and that they breached the same, leading to your suffering compensable injuries.

While the process may seem straightforward, it usually is not, and it is fraught with legal nuances that the average American may not have an appreciation for, and this is the major reason why we tell prospective clients not to consider as the insurance company is not only more experienced than you at the intricacies of personal injury law, but taking a case to court will have you face tough defense strategies and with insufficient preparation as far as evidence and witness preparation are concerned, you may have your case thrown out in just a few days.

By reaching out to the experienced and celebrated attorneys at McCready Law, you get to fully understand the tax implications of a personal injury claim as well as ensure you get the maximum compensation allowed by the law – read on to find out more.

Injured by Negligence? Call Now for a Free Consultation

Are you looking for the best personal injury attorney? Please call us NOW at (314) 481-63338 to learn more about your legal options for justice and compensation. The experienced injury lawyers at McCready Law bring to the table over 90 YEARS of combined legal experience where we’ve helped tens of thousands of injured Americans recover compensation after getting injured due to the negligent actions of other individuals or large commercial or corporate entities. Over the decades, we’ve been able to recover over $260 million and counting for our clients, and some of the key reasons for our massive success in the personal injury field involve the following: all cases are handled by Bonafide, experienced attorneys and not legal assistants or paralegals as is often seen in most firms.

On top of that, we ensure to work closely with highly regarded experts when it comes to crafting objective medical reports which demonstrate causation, accident reconstruction specialists, investigators as well as forensic experts, all done to ensure we have a meaty case that can stand up to scrutiny. In addition, we are not afraid to litigate a viable claim as more often than not, doing so may secure a substantial compensation that can be hundreds of thousands or even millions more than what the insurance company is offering. We run a bilingual firm (hablamos Español), and we take on all cases on contingency fee basis, which simply means that there are ZERO UPRFRONT FEES for the duration of the processing of your claim, as we only levy our fees at the end of the suit, and only if we’ve recovered compensation on your behalf.

If you or a loved one got injured due to the negligent action of another individual or corporation, please reach out to us NOW at (314) 481-63338 to learn more about your legal options for justice and compensation – our intake team is standing by.

Personal Injury Settlements – What’s Taxable and What Isn’t?

Here’s a list of some of the damages that are typically not taxed in a personal injury claim:

1. Reimbursement for medical expenses – past, present and future is not taxed as the law states any amount of damages apart from punitive damages whether by suit or agreement will not be taxed as long as the same is meant to compensate you for losses incurred from a medical treatment standpoint.
2. Compensation for pain and suffering directly related to physical injuries is also not taxed as the settlement aims to address the emotional distress, physical discomfort and mental anguish that are a direct consequence of the injuries you endured on account of the accident.
3. Lost wages resulting from physical injuries are also not taxed if your injuries made it impossible for you to working and earning an income during your recovery or convalescence period.

Conversely, these aspects of your settlement may be taxed:

1. Lost wages that are not directly linked to physical injury for instance lost wages on account of emotional distress while still being able to physically work may be taxed as you are seen as able-bodied and do not have any physical limitations that may prevent you from going to work
2. Punitive damages are usually taxed as they are not intended to compensate you for your actual losses since they are only awarded to you for the egregious actions perpetrated by the defendant and are meant to punish them for their malicious and reckless actions and to serve as a deterrent to similar future behavior.
3. Any interest earned on the settlement award is also taxed and this may include any accrued interest that is tied to the settlement award from the time of settlement agreement or judgment to the time of its payout.

Best Countrywide Injury Attorneys – Call Us Today!

We understand that all of this may seem confusing, and the calculations regarding what you may receive as your settlement or judgment may be shrouded in secrecy. However, due to the fact that every case is unique, it is important to reach out to us at (314) 481-63338 NOW so we can undertake a full assessment of your claim and better advise on the next legal steps to take so we can have you compensated in as little time as possible. Thanks for choosing McCready Law, and we look forward to helping you.