Author: Jay Howard
Personal injury cases often come with severe injuries and damages. The treatment costs, hospital bills, and other financial losses can feel overwhelming. Filing a personal injury claim to recover your damages and compensate you for recovery finances is vital to your health and well-being. While compensation is vital, there are important notes regarding taxable settlements.
For the most part, Georgia personal injury settlements are not subject to tax. However, a few exceptions require individuals to pay taxes on parts of their settlement. When you work with an experienced personal injury lawyer, they will inform you on whether you are required to pay taxes on your settlement or parts of your settlement.
What Portion of a Settlement Is Taxable and Not Taxable?
While your personal injury lawyer will inform you about the taxable parts of your settlement, it’s important to note the possibilities. Understanding which parts of your settlement are taxable and which are not can help you better understand and prepare for the case’s aftermath.
In Georgia, the following indicate which sections of your settlement will require you to pay taxes:
- Settlements based on lost wages
- Settlements from punitive damages
- Settlements in which an individual suffers an illness or physical injury from a breach of contract
- Settlements in which an individual deposits the settlement into an interest-bearing account
The types of damages you recover in a personal injury claim depend on the type and severity of the accident. However, if any of the above factors occur, you must pay taxes on those parts of your settlement.
Most parts of a personal injury claim are non-taxable, including:
- Settlements that stem from a physical injury or illness
- Settlements for non-economic damages such as physical disfigurement or pain and suffering
- Settlements in which an individual suffers emotional distress due to a physical injury
- Settlements in which an individual receives money for economic damages, such as medical expenses or property damage
Talk with your personal injury lawyer about the possibility of paying taxes on your settlement. They can provide you with more personalized answers on what you can expect from your settlement.
Should You Contact a Personal Injury Lawyer?
Personal injury claims can feel complicated and overwhelming, especially when taxes are involved. Having someone familiar with the complex processes and strategies is essential to recovering the compensation you deserve. A personal injury lawyer has the tools and resources to help you recover your damages and protect your rights. The following are a few examples of how a personal injury lawyer can assist you:
- Establishing the other party’s negligence
- Answering questions about your case
- Conducting a fair investigation
- Discussing claims with insurance companies
- Reviewing legal documents
- Analyzing potential legal issues
- Negotiating settlement offers
The sooner you contact a personal injury lawyer, the more time they have to guide you through the legal process and gather the necessary documentation to prove the other party’s fault. Without seeking help from an experienced legal professional, your rights and compensation can be at risk.
Contact an Experienced Georgia Personal Injury Lawyer at Tabbaa Law
Tabbaa Law has years of experience working within Georgia law and advocating for its residents. We understand that every case and individual requires unique assistance, so our legal services are tailored specifically to your needs. Our countless positive testimonials and past experiences show our dedication to our clients. A personal injury claim comes with many unfamiliar processes, but we will stay by your side every step of the way.Personal Injury