Are Pain and Suffering Settlements Taxable?
If you were hurt in an accident caused by another party’s negligence, the legal process could often take months or years before a settlement or payout can be reached. When you receive financial reimbursement for all the expenses and costs you sustained since the accident, it’s exciting and comes as a relief to many. However, it’s essential not to rush the negotiation process until you’re confident in not only the amount offered but also the way the settlement is structured.
Before signing any final settlement offers, be sure you understand what portions of the payout are taxable. If you’re not careful, a poorly structured settlement offer can cost thousands of dollars in taxes alone. Be sure to consult with one of our best personal injury lawyers on your case before any offer is accepted and finalized. Consulting with a knowledgeable attorney with extensive experience in personal injury can help you get the most of your settlement and remove any unnecessary tax liability.