I am suing a company for cancer that I got from asbestos while I was a plumber. If I get any money by either settling or after a trial/jury verdict do I have to pay taxes on the money?
No. The proceeds of a personal injury settlement are not taxable.
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An award for pain and suffering is tax exempt under the IRS code. However, should speak with your attorney and a tax advisor upon the resolution of your case (as well as a financial planner). Sorry to hear about your situation and good luck with the case.
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Any pain and suffering portion of a settlement is not taxable. Any lost wage component is taxable.
No - compensation in a personal injury case is not taxable income. Best of luck in your case!
You need to speak with a financial advisor to be safe. In general money for pain and suffering damages (non-economic damages) are not taxable. Money you receive for lost wages and/or loss of earning capacity from personal injury case is a taxable event.
Sagi Shaked is a Florida Bar Board Certified Civil Trial Attorney. To schedule a free consultation, call (877) 529-0080 or (305) 937-0191. I am licensed in Florida, therefore, my answers are based on general prinicpals of law or Florida law, which may not be applicable in your jurisdiction. Answers posted to Avvo are for general information only and do not create an attorney client relationship. Do not conclusively rely on any information posted online when deciding what to do about your case. Every case depends is different and fact dependent, and responses are limited to and is based on the information you posted. No attorney-client relationship shall be created through the use reading of this response on Avvo. You should never delay seeking legal advice, disregard legal advice, or commence or discontinue any legal action because of information in this response.
So long a the entire settlement is characterized as pain and suffering there is no tax consequence to you. If any portion is labeled lost income then it will be. Be sure to speak to you attorneys about your workers compensation claim and social security disability claims as well. Also if you were a union plumber you may be entitled to a disability pension from your union. But at the end of the case if its worded correctly you will never owe taxes on it.
Personal Injury Lawyer
Talk to your atty and your cpa. While personal injury recoveries are not generally taxable, there could be some nuances that have yx implicaions. Talk to a tax atty, or other qualified tax advisor. I moved you question to the tax area.
No, not under current IRS regulations. You should speak with your attorney about this issue.
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Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to ensure proper advice is received.
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Personal Injury Lawyer
It depends on the terms of your settlement agreement and how the funds are categorized. Your attorney should know how to handle this for your best interest.
Attorney Stacy E. Pepper is licensed in all State and Federal Courts in Mississippi. He is a founding Partner in the law firm of Pepper & Odom, P.C. Nothing posted here constitutes any attorney client relationship and is meant for educational purposes only. Office hours are 8:00 a.m till 5:00 p.m. Monday through Friday. Phone: 601-914-9219 Facsimile: 888-456-2160 www.pepperodom.com