IS MY PERSONAL INJURY SETTLEMENT TAXABLE?
Hi, Tyson Mutrux here again with the Mutrux Law Firm and today I’m answering a sticky question as to whether or not my personal injury settlement is taxable.
As a general rule the answer to that is no. However, there are some very specific situations where it may be taxable and you have to pay a lot of attention and your attorney has to know what they’re doing. If there is any interest, for example, if you put it into an annuity or something like that, and it’s interest bearing, the interest bearing part is taxable. So be careful about that.
Also, punitive damages. So if part of your recovery is from Punitive Damages. Let’s say it’s a drunk driver, the punitive portion part of it is taxable unless it falls under the wrongful death statute that prevents it from being taxable. So there are very specific situations where your personal injury settlement may be taxable so you need to make sure you consult a tax attorney with regards to that, or at least know a personal injury attorney that knows what they’re doing.
For any other questions like that, or if you have any questions and want to give us a call you can speak with our tax attorney, please give us a call at 888-550-4026 or check us out on the internet. Thanks!
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