Each settlement is different and any questions about how to prepare or file tax documents with the Internal Revenue Service or the California Franchise Tax Board (or any other state tax collection agency) should be handled on a case-by-case basis. That being said, the general rule of thumb is that “income” is taxable, and other sources of revenue often are not. This means that a portion of a settlement designated as lost wages – i.e. compensation for income that you lost due to an injury – is likely taxable as income. However, settlement funds meant to compensate for pain and suffering, or compensate for the costs of medical care are usually not. However, it is important that you get specific advice from either your tax preparer or the an experienced personal injury attorney to better understand the tax consequences of a personal injury settlement.
¿Cómo Puede Ayudarme Un Abogado De Lesiones Personales?
¿Cuánto Tiempo Tengo Para Presentar Un Reclamo De Accidentes De Auto?
¿Cuáles Son Las Lesiones Por Accidentes Automovilísticos?
How Do Car Insurance Companies Investigate Accident Claims?
How Do Insurance Companies Calculate Car Accident Settlements?
How Do You Submit A Personal Injury Insurance Claim?
How Does Homeowner’s Insurance Work?
How Does The Personal Injury Claim Process Work?
How Much Time Do I Have To File A Claim After An Injury?
How To File An Insurance Claim For A Slip And Fall Injury Case
Is My Personal Injury Settlement Taxable?
Is There A Statute Of Limitations On Car Damage In California?
Is Tort And Personal Injury Law The Same Thing?
¿Qué Debo Hacer En Caso De Un Accidente Automovilístico?
¿Qué Es Un Asalto En Un Entorno Criminal?
¿Qué Pasa Si La Persona Restringida No Obedece La Orden?
Under What Circumstances Are Statutes Of Limitation Extended?
What Are The Types Of Damages In Personal Injury Cases?
Why Do Personal Injury Lawsuits Take So Long?
Why Is My Personal Injury Attorney Talking About A Jury Trial?
What Can People Do When Injured By Defective Products?
What Is A No-Fault Law For Automobile Accidents?
What Is Liability Car Insurance?
What Is The Difference Between Lawsuit and Tort Claim?
What Is Third-Party Insurance?
What Happens After a Car Accident With No Police Report?
What Happens If You Crash Someone Else’s Rental Car?
When Should I Contact An Attorney After A Car Accident?
When Should I Hire A Personal Injury Attorney?
When Should I Sue After a Car Accident?
Why Do I Need Car Insurance In Order To Drive?
Why Do Personal Injury Attorneys Have Such A Bad Reputation?