Is a Personal Injury Settlement Taxable for Income Tax Purposes?
Is my personal injury settlement taxable? In Florida when a person settles a Florida personal injury case, the proceeds from the settlement typically are not taxable for purposes of income tax. The net proceeds from the settlement are not taxable is because the settlement is considered a casualty loss. In other words, the a personal injury settlement is generally not considered to be revenue, income, or profit by any means. In some cases, it may be helpful to discuss the taxable consequences of a personal injury settlement with a CPA certified public accountant or a tax attorney with there are high dollars involved and the replacement of income may be part of the settlement. However in most injury cases the conventional wisdom is that the net proceeds from a personal injury settlement are not taxable.
There can be many challenges and complexities to an automobile accident claim or case in the State of Florida. Because of this, an injury victim will be well served to consult with and hire a Florida personal injury attorney on the case.
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Representing Adults and Children injured in Florida and their families for over 50 years. Handling an injury case requires knowledge of Florida laws, medical care, education, and family matters as they pertain to the injured person.
Personal Injury Attorney with Emphasis on Child Injury Matters, Author, Founder of Child Injury Lawyer Network