Is the money that you receive from a settlement for an injury taxable? And if so how much? Thanks for any info you can give.
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ANSWER for "Is Settlement Money Taxable?":
This is an excellent and common question. Settlement money that is attributed to physical injury, pain and suffering is not taxable because it is not considered "income." Settlement money that is identified as income replacement or lost wages is taxable just as income you would have actually received would be.
This is why the language of a settlement release must be accurately drafted.
The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from an attorney licensed in your state. Find a local attorney to give you a free case review here, or call (888) 647-2490.
The accuracy of information provided on this site is not guaranteed. It is generic information for informal purposes only. It is NOT formal legal advice. Your use of this site does NOT create an attorney-client relationship. Before relying on any information found in this site you should consult with a licensed attorney in your state. If you are currently represented by an attorney, you should strictly abide by his/her counsel.