Taxation and Personal Injury Claims
In a successful personal injury case, an individual may be awarded a compensatory sum of money. This money is meant to cover the costs of that person’s injury. This includes a wide range of expenses that may come up because of that injury. Although this money can be treated as a form of income, the government generally regards these funds as non-taxable income.
If you have been injured in a car accident and you have questions regarding personal injury lawsuits and financial compensation, contact the Green Bay auto accident attorneys of Habush Habush & Rottier S.C. at 800-242-2874.
Compensation can be extremely beneficial for a person’s financial stability after an injury. However, taxing this money can leave an injured individual without an adequate amount to cover the full range of their injury-related expenses. The government provides a tax-free status for compensation in the following cases:
- Medical bills
- Loss of consortium
- Lost wages and job opportunities
- Compensation for the injury
- Compensation for emotional damages
There are a few types of compensation that the government does not extend this tax-free status to. These include forms of compensation that cover libel and compensation for employee mistreatment.
To learn more about fighting for compensation following a car accident caused by a reckless or negligent driver, contact the Green Bay car accident lawyers of Habush Habush & Rottier S.C. today by calling 800-242-2874. We are dedicated to helping injured individuals pursue the compensation they need, and we may be able to help you.