First things first—no. If you’ve been injured in a car accident, then you may be eligible for a settlement through a personal injury claim. Once you’ve received your settlement, there are a few reasons why it won’t be taxed, such as:
- There’s an understanding that you aren’t expected to pay taxes on a car accident settlement that’s meant to compensate you for your personal injuries or pain and suffering
- Money you would receive from your settlement to get your car fixed or replaced usually isn’t taxable.
These same tax rules apply regardless if you received an out-of-court settlement after your car accident, or were awarded money from a civil court after trial. Your car accident lawyer should be able to provide you with a general understanding of the taxability of your settlement, however, most personal injury lawyers aren’t experts in tax law. Keep the more complex questions about the tax implications of a car accident settlement for a tax professional.
If you’ve been in a car accident you should Get Gordon! Louisiana law defines a one-year statute of limitations for personal injury cases, so you should call Gordon McKernan Injury Attorneys at 888.501.7888 as soon as possible after your accident. That will give us the most time to look into your claim and help you recover the compensation you deserve!
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