Crash Victims Info

Can a personal injury lawyer tell me what parts of a settlement are taxable? ?

I am in the middle of a six figure settlement and am just curious as to what parts are taxable and which are not, as i have gotten mixed answers from people. thanks

Public Comments

1. It's all taxable as income. Some legal expenses may be deductable but I don't think so unless they are job related. See a tax accountant for accurate answers as to what might be deductable.
2. it is most certainly not all taxable. I didn't pay a dime on an almost 7 figure settlement from the early 2000's.
3. The settlement is NOT taxable. Only the interest, if any, is.
4. Under federal tax code, amounts received for compensation for personal injuries or damages (awarded or settlement) are not considered part of "gross income." However, you must include as "income" any portion received as a "punitive" damages, or for back pay or lost wages, interest on awards, lost profits, copyright and patent infringement, breach of contract, and any attorney fees and costs resulting from these types of awards. Furthermore, if there are damages awarded for "emotional distress", whether or not that part of the award is taxable depends on whether it was caused by a physical injury and if it goes beyond payment for medication.
5. Dead on arrival, I'm sorry to hear about your situation. I was hurt once when a van backed over my foot at work. My employer attempted to settle with me quickly because I knew they were try to get me to sign some papers to release them from responsibility. I called a local personal injury lawyer in my area who provided me useful advice and I was able to get a small settlement to cover my hosptial bills that weren't covered by my work insurance. I'd find a accident lawyer in your city. http://www.accidentlawyerlocator.com My injury lawyer was help me because they stand to make some money at the same time. Try calling a accident lawyer to see if they can help. Sorry to hear about your situation.