FAQs

Q: Are Personal Injury Settlements Taxable?

When it comes to the question of whether or not personal injury settlements are taxable, the short answer is, it depends. The amount of money that makes up a personal injury settlement comes from different considerations. Those considerations are treated differently for tax purposes . First, a portion of a personal injury settlement will be based on paying for the medical costs associated with the injury. If you have taken a tax deduction based on the amount of medical bills you paid as a result of the injury, you must claim the settlement as income to “pay back” that deduction. If you didn’t claim medical expenses, the full amount is not taxable. Another portion of personal injury settlements is dedicated to loss of work after an accident. This amount of money is treated as self-employed income at the end of the year. The money you receive for property damage is not generally considered taxable, although you’ll need to reduce the value of your property accordingly. Punitive damages, or the amount of money awarded as punishment to the negligent party, are considered taxable and must be reported just like other forms on income. An Atlanta personal injury lawyer can provide more information about details of a settlement.

Q: Drunk Driving Accidents

Drivers who operate motor vehicles under the influence of alcohol, illegal drugs, and medication pose a danger to the safety of others on the road. Georgia law provides for criminal penalties for drivers who drive while impaired, but those penalties do nothing to directly help the person injured by the impaired drivers. Under Georgia civil law, juries may be told about any and all times when an impaired driver drove while impaired. Further, impaired drivers make a conscious decision to drive even though impaired, and accordingly, punitive damages should be levied against impaired drivers. Punitive damages are a sum of money that is required to pay in order to punish and deter the driver and deter the community as a whole from driving while impaired. A jury will decide how much money is appropriate. If you've been involved in an accident involving an impaired driver, contact an Atlanta drunk driving accident lawyer today at 404-948-3311.

Are Personal Injury Settlements Taxable?

Mike Rafi2024-10-27T00:30:21+00:00June 17, 2020|

Drunk Driving Accidents

Mike Rafi2019-04-11T09:07:58+00:00April 11, 2019|

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