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I am concerned about my tax obligations from a settlement from a car accident. or Will I have any tax obligations? if so, how

Albany, GA |

much and how will I know how to file along with my personal filings.

Attorney Answers 6

  1. In Georgia, settlement funds are not taxable. You need not report it on your taxes.

  2. Usually not taxable - however, you should consult you tax advisor

    This is not intended to be legal advise or as legal representation. I am a California personal injury attorney . Be aware that every state has its own statute of limitations; and statutes & case laws that govern the handling of these matters.

  3. You really need to get advise from a tax lawyer, CPA or other tax expert. Because the tax laws are constantly changing, it is generally not an area that most personal injury injury lawyers feel completely confident or qualified to answer. That being said, my general understanding is that if part of the settlement involves reimbursement for past or future lost income, that part is likely taxable. Reimbursement for medical expenses and for pain and suffering are generally not taxable.

  4. A monetary recovery received from a car accident settlement is not treated at income by the IRS and thus it is not taxable.

    Best wishes!

    Sam Levine, Esq.
    (404) 303-8875

  5. Most (but not all) settlements are non-taxable. Run it by your CPA.

    If you find this answer helpful, please mark it here on AVVO as helpful. In answering you, I am attempting to communicate general legal information and am not representing you (and am not your lawyer). Do feel free to call me at 404-768-3509 if you wish to discuss actual representation (the phone call also does not retain counsel; that requires an office visit and appropriate paperwork). In that a forum such as this provides me with limited details and doesn't allow me to review details and documents, it is possible that answers here, while meant to be helpful, may in some cases not be complete or accurate, and I highly recommend that you retain legal counsel rather than rely on the answers here. (You can also email my office at . An email also does not retain my office, but can help you get an appointment set if you prefer not to call). I am happy to discuss possible representation with you. Any information in this communication is for discussion purposes only, and is not offered as legal advice. There is no right to rely on the information contained in this communication and no attorney-client relationship is formed. Nothing in my answer should be considered as tax-advice. To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein. Note that I am only licensed in Georgia and thus cannot practice in other states. I am also required to advise you, if your question concerns bankruptcy, that the U.S. Congress has designated Ashman Law Office as a debt relief agency that can help people file bankruptcy.

  6. The lost wage component is taxable.

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