Taxes on Personal Injury Settlements
After settling a personal injury case, you may be asking, "Do I have to pay taxes on my personal injury settlement?" The answer is: it depends.
Taxable settlements are dependent on what type of compensation a claimant pursues in the first place. The following circumstances are when you may need to pay taxes on a personal injury settlement:
- You secure financial compensation for lost wages
- You recover noneconomic damages for emotional distress
- You secure punitive damages
- There was interest in the judgement; interest on the verdict is taxable
If you have additional questions related to your unique case, schedule a free consultation with a personal injury lawyer to learn more.