Will I Have to Pay Taxes on a Personal Injury Settlement?
Following your personal injury, you may consider yourself lucky to be able to settle your claim. You may have the full amount you were hoping to receive offered to you. The problem is, you may be concerned about keeping the full compensation you need for your financial recovery.
Do you have to pay taxes on a personal injury settlement in Florida? If you’re receiving a significant amount of money, you may be worried about losing a large portion of those funds to taxes. Large gifts and other payments may have tax implications, so it’s fair to wonder if your Lakeland personal injury settlement will be affected, too.
While you shouldn’t have to pay in most cases, talk it over with your lawyer to be sure.
Injury Settlements Aren’t Usually Taxable
When you’re injured in a serious accident, you typically don’t have to pay taxes on the compensation you receive for a personal injury settlement. If you suffered a physical injury, such as in a car accident, you typically do not have to pay taxes on those funds.
You were injured because of someone else’s actions, and you should have never lost those funds in the first place, after all. That means you can focus on your physical recovery, not worrying about losing part of your compensation through your taxes.
Your Lakeland Personal Injury Settlement May Be an Exception
But not every Lakeland personal injury claim is so easy to settle. Florida injury victims may find their Lakeland injury settlements are excepted from the rule if they didn’t suffer a physical injury.
For example, let’s say someone threatened your life, or they caused severe emotional harm to you, and you sued. You may have received compensation for your emotional anguish, but not for a physical injury. In these cases, your compensation could be taxed.
To avoid being taxed on your claim settlement, you may need to also prove you were physically injured in the accident. Any signs of injury can make a difference, and your Lakeland personal injury attorney can help you seek compensation that won’t be taxed. Your lawyer can also help you settle your claim or take that claim to court.
Ensure You Get Fair Compensation with a Lakeland Personal Injury Lawyer
When you’re hurt by someone else’s action, you may be due a personal injury settlement, but will you have to pay taxes on your settlement? Unfortunately, you may have to pay in Florida, depending on your claim details. But there are options for avoiding these losses and getting your maximum compensation.
If you’re concerned about giving up part of your Lakeland personal injury settlement to Uncle Sam, you can reach out to the lawyers at Lopez & Humphries, PA. We know that the costs of losing parts of your settlement can be high, especially when others are expecting their part of the settlement. That’s why you may need aid to help you get your maximum settlement without losing a portion of it.
Your Lakeland, Florida, lawyer can talk this over with you during a free consultation about your claim. To begin, reach out by calling 863-709-8500 or by filling out the online contact form below.