Collecting money after a car accident settlement can be a process nearly as complicated as suing for damages in the first place, particularly if you are faced with collecting your money from an insurance company. Frustrating delays and insurmountable obstacles may stand between you and the money you need to pay your medical bills and other expenses. How can you be sure you will receive your money quickly and easily? The best way is to work with a personal injury attorney with experience in collecting car accident settlements.
With tax season upon us, we’d like to take this opportunity to share with you just how a jury award or settlement from a personal injury suit will be looked at by the taxman.
How the Tax Code Looks at Personal Injury Awards & Settlements
Before legislation was changed in 1996, practically all personal injury settlements and jury awards were ruled to be non-taxable – meaning you didn’t have to pay taxes on what you were given or awarded.