Maison Law represents big rig accident victims in California. A big part of your legal rights after one of these accidents is getting a settlement. But that comes with certain questions, namely involving tax implications and the IRS. Our team can help you through this process. Contact us today for a free consultation.
Do You Have to Report Your Big Rig Accident Settlement to the IRS?
Getting a settlement after a big rig accident is incredibly important, and you could easily argue that it’s the main point of even filing a claim in the first place. But every settlement, whether it’s in a big rig accident claim or some other claim, has different parts to it even though it’s typically paid to you in one lump sum.
So, not all parts of your big rig accident settlement need to be reported to the IRS. The key depends on what type of damages you receive:
- Physical injuries – Part of your settlement is going to cover your injuries, such as medical bills, pain and suffering, emotional distress, or loss of quality of life. These damages are generally not taxable, so you don’t need to report them to the IRS.
- Economic damages – Damages for things like lost wages from missed work, repair or replacement costs for your vehicle, or any punitive damages are taxable. This means you have to report them to the IRS.
While our main goal is to get you a fair settlement that covers all your damages, it’s important to consult a tax professional or accountant to make sure you’re doing the right things when it comes to reporting to the IRS.
What Can You Do to Maximize Your Big Rig Accident Settlement?
Filing a claim after a big rig accident doesn’t automatically mean you’ll get a fair settlement. To improve your chances, you need to build a strong case that clearly shows how the accident has affected you. Here’s what you can do right after the accident to maximize your settlement:
- Take care of your health – Move to a safe spot away from traffic and call 911 for help. Paramedics will look you over and stabilize you at the scene. If you’re seriously injured, they’ll take you to a hospital for treatment.
- Call the police – You can also ask the 911 dispatcher to send the police to the scene. This could be the California Highway Patrol (CHP) or local police, and they’ll manage the scene and document the accident to get insurance details from everyone involved.
- Document the scene – If it’s safe and you’re able, take pictures of the scene, your vehicle’s damage, your injuries, and anything else that might be important, like skid marks or road conditions. Also, get contact information from any witnesses that saw what happened.
- Keep track of your losses – Keep a record of all your medical visits, bills, and any communication with insurance companies. These will help prove how much the accident has cost you.
- Watch what you say – Be careful when talking about the accident, especially with insurance representatives. They might try to use your words against you to lower your claim. Also, avoid posting anything about the accident on social media.
In most big rig accidents, it’s extremely likely that you’ll be seriously hurt. This is going to make these steps hard to handle on your own. But gathering this information is important to building a strong claim and getting the most out of your settlement.
What’s the Process For Getting a Big Rig Accident Settlement?
The process for getting a settlement after a big rig accident is similar to other personal injury claims. If the other driver is at fault, they (or their insurance) are responsible for paying your damages. Once you can show they were negligent, you can get a settlement in two main ways:
- Filing an insurance claim – You can try to settle the case out of court by working with the big rig driver or company’s insurance company.
- Filing a personal injury lawsuit – If the insurance claim doesn’t lead to a fair settlement, you can file a lawsuit to take the case to court.
Your settlement is meant to cover your losses, which can include:
- Medical bills
- Lost wages or lost future income if you can’t work
- Repair or replacement costs for your vehicle
- Physical pain and suffering
- Emotional distress
- Loss of quality of life
- Wrongful death benefits
- Punitive damages if the driver’s actions were especially reckless (like DUI or reckless driving)
Keep in mind, you only have a certain amount of time to file a claim. In California, you have two years from the date of the accident to take legal action. If you miss this deadline, you won’t be able to get a settlement at all.
Experienced Big Rig Accident Lawyers in California
Maison Law and our team of experienced California big rig accident lawyers can guide you through the claims process and make sure you’re able to get the most out of a claim. While we can’t give you direct tax advice, your settlement is going to involve tax implications. That’s where you can count on our experience and resources. If you’ve been in a big rig accident and want to know more about your legal options, contact us today for a free consultation.
