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Taxes on Personal Injury


Getting in an accident is never expected and can cause claims where personal injury compensation is given. With this money given it is important to keep in mind Uncle Sam and the IRS.

Taxes are due on April 15th, with that in mind it is important to know what is taxable from your personal injury settlement. In most cases personal injury compensation is not taxable at a federal or state level. This is compensation on things like lost wages( time off from work), emotional distress this can include PTSD and depression, pain and suffering actual pain from the injury and the repercussions from that, and medical bills. But like every rule there are always exceptions, these include cases when you suffer a personal injury during the breach of a contract and the breach is what you base the lawsuit on.

If you have emotional damages it cannot be taxed if it came from an initial physical injury, otherwise it will be taxed. Any damage received on your vehicle because of a car accident is not taxable. If you are injured in a car accident or have a personal injury claim, make sure to contact us Handy and Handy personal injury lawyers in your time of need.

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