So do I have to pay taxes on my personal injury settlement?
I can tell you this is a very complicated question because the answer is yes, you may. It depends on your case, it depends on your award, it depends on your settlement and more important it depends on how the monies are characterized. It’s so complicated that I wrote a blog on it and I linked to that blog as part of this. On a normal personal injury settlement, your pain and suffering, you don’t have to pay tax. But you could have to pay tax on interest. You could have to pay tax on the medical damages settlement piece. Depending on how it’s characterized and depending on whether or not you’ve claimed those medical bills in your taxes prior to the settlement. So there are lots of ins and outs, certainly too much for this video, but click on the link and go to the blog and it’ll give you more information.
If you’ve been injured in an accident, make sure you call us at Zanes Law because we know the ins and outs of these cases from top to bottom and we will make sure that you’re taken care of.