Will I Have to Pay Taxes on My Personal Injury Settlement?
You’ve been through so much because of the carelessness or wrongful behavior of someone else. You’ve been injured and suffered tremendous damages because of them. You’ve dealt with pain, mental anguish, loss of income, medical costs, and so much more. Whoever did this to you could pay through the civil claim process.
But first, you have to win your Rockford personal injury claim. Winning a personal injury claim is a lot of work. Some people who are entitled to injury compensation don’t attempt to file a claim because they fear the process will be too much of a hassle.
If you do choose to go through all that hard work, you do so because you expect to get a reward at the end. You deserve to receive compensation for your injuries. You deserve to get justice for what you went through.
What if You Have to Pay Taxes on Your Personal Injury Settlement?
But what if you work hard to obtain a settlement only to have it all taken from you in taxes? That would be incredibly frustrating. You need the money from your settlement to pay for the losses your accident and injuries have caused you. You need that money to move on with your life.
Your settlement is carefully calculated to ensure it compensates you for every loss you suffered. That money is intended to make you feel whole. You won’t feel whole if part of it is taken by the IRS.
Here’s the good news: The IRS doesn’t take personal injury settlement money in most cases. It doesn’t consider personal injury settlement money as income, thankfully.
One exception to that rule: If you paid less money in taxes because you claimed medical expenses on your tax bill, you could owe the IRS money. If you receive that money back to you from your personal injury settlement, you might need to give the IRS some money. To learn more about when you might owe the IRS some money, you should talk to a lawyer.
How Can a Personal Injury Lawyer Help You?
When you are considering filing an injury claim, you could be in need of legal assistance. Personal injury lawyers are experienced in handling cases like yours. They can provide you with legal advice and assistance that can make winning injury compensation a lot easier. They can help you understand the laws as well as how much your case is worth.
Speak with a Top-Rated Personal Injury Lawyer in Virginia
A Virginia personal injury lawyer is ready to help you with your case. You don’t have to do this on your own. You can focus on your health and recovery while your lawyer focuses on getting you paid. You will probably feel better knowing a lawyer is watching your back and watching out for your best interests.