Is a settlement payment taxable?
If you are successful and win your personal injury case, you might receive a specified amount of money from the defendant to address related damages. Many people are unsure about whether or not they are required to pay a portion of these financial awards in taxes to the Internal Revenue Service (IRS). Typically, financial rewards from personal injury cases are not taxable unless part of the payment was to reimburse you for lost wages. Because income is taxable, this financial reward is also taxable.
If you have any questions or concerns about your personal injury case, contact the San Diego personal injury lawyers of Ritter & Associates today at (619) 296-0123 to schedule a free consultation to discuss your legal options.