Will I Have to Pay Taxes on My Personal Injury Settlement?

Injury accidents cause a lot of suffering for the victims. You have probably been seriously injured and suffered extensive losses. For instance, maybe you are dealing with expensive medical bills as a result of your accident. Maybe you can no longer work due to your injuries. Now you don’t have income. 

You could also have pain and suffering, permanent injury, scarring, disfigurement, lost life happiness, and mental suffering. Your personal injury settlement was intended to pay for all of these losses.

Will You Have to Pay Taxes on Your Personal Injury Settlement?

Personal injury settlements are hard won, and you don’t want to lose it all paying taxes. You may have spent months, sometimes years, trying to secure that money. You need the money you secured in a settlement to pay for your losses and provide for your future. Will you have to pay taxes on a personal injury settlement?

Thankfully, no. In most cases, you will not have to pay the IRS any money from your settlement. The IRS does not consider money won in a settlement as income. There is an exception, though. 

If you were compensated for medical expenses related to your personal injury accident, you could have to pay the IRS in one situation. If you already claimed those medical expenses on your taxes, which reduced your tax liability, then you could have to pay some money to the IRS. 

Can a Personal Injury Lawyer Help with Your Case?

It’s usually best to discuss your personal injury case with a lawyer. They can help you by offering legal advice. They can make sure you don’t violate any laws and can protect your interests. Injury lawyers can help you get a personal injury settlement by going after the at-fault party on your behalf.

When you have a lawyer, you will feel much better about your case results. You will know that all legal aspects of your case are being property handled. Your lawyer will help by investigating your case, collecting evidence, proving your case, completing claim paperwork, and dealing with insurance companies.

Sometimes, they will even take a case to court to win compensation. If you need help with your personal injury claim, or you have additional questions, reach out to a lawyer for help.

Contact a Charlotte Personal Injury Lawyer

Many personal injury victims have a lot of questions prior to filing injury claims. You want to know you’re doing everything right and that you’re getting the most out of your Charlotte personal injury case. You don’t want to be shortchanged or mistreated by insurance companies. You don’t want to make any errors that could lead to legal issues or get your case thrown out. 

You deserve justice and compensation. The Nye Law Group is trusted to win key results for its personal injury clients in Charlotte. Call 704-285-6319 or fill out the form to get a free case consultation.