In terms of practical questions about personal injury compensation, many injured individuals may wonder whether they’ll be expected to pay income tax on this money or not. In short, the answer in most cases is no. For the most part, the federal government doesn’t require a person to pay income tax on any money they win as compensation for a physical injury. However, there are some exceptions to this rule.
If you have unaddressed concerns about your personal injury lawsuit, we can help you find the answers you’re looking for. For more information about your legal options and what to expect in your lawsuit, contact a Lake Geneva injury lawyer of Habush Habush & Rottier S.C. today by calling 800-242-2874.
In some cases, the government may consider portions or types of compensation taxable. However, these instances are rare, as most personal injury compensation is provided to the defendant without any tax burden. These exceptions include the following:
The actual amount of compensation provided to cover medical expenses and other injury costs won’t be taxed by the federal government, however. This money, for tax purposes, is treated as an altogether different type of income.
Personal injury lawsuits can quickly become confusing, uncertain legal affairs that a person without professional training may be uncomfortable handling on their own. That’s why we’re here to help. To learn more about how we may be able to assist you in preparing and arguing a claim for financial compensation after an injury, contact the Lake Geneva personal injury attorneys of Habush Habush & Rottier S.C. at 1-800-275-1729 today.