Some parts of a truck accident settlement may be taxed. The reimbursement victims receive for their lost time at work and car repairs would usually be claimed on a tax return. Support victims are awarded for medical bills, for physical pain, and for emotional trauma would not usually be taxed.
Truck accident victims should seek professional guidance from a tax expert after receiving a collision settlement for the final word on what should go on a tax form. Victims should also trust their injury claims to a California truck accident lawyer to make sure they receive the full support they need to cover all medical bills and other damages.
What Part of a California Truck Accident Settlement Could I Keep?
After a scary traffic collision on a California road involving a big truck, victims can be left with major injuries and financially devastating hospital bills. Victims may also fall behind on normal cost of living expenses while they can’t work. This can include car payments and rent or a mortgage.
Victims need to make sure they receive enough compensation to cover every physical and financial hardship. That money may come from a truck driver’s commercial truck accident insurance. It may also come from the truck driver’s employer which may also carry insurance for its employees.
Victims may require the help of a California truck accident lawyer to make sure commercial truck insurance companies can’t escape blame. After a fair settlement amount is agreed upon, victims also have to worry about paying the IRS its fair share. Although some portions of an injury settlement wouldn’t be taxed.
Victims usually don’t have to pay taxes on these portions of a settlement:
- Compensation you receive to cover medical costs for an injury or a sickness suffered in a traffic collision.
- Compensation for the physical pain you’ve suffered and may continue to suffer.
- Compensation for the emotional trauma you’ve endured and may continue to have to cope with.
- Compensation for factors involving a loss of quality of life.
What Part of a California Truck Accident Settlement Do I Have to Claim on Taxes?
There are some aspects of an insurance settlement or court judgment that the tax folks will want their share of.
What usually gets taxed in a truck accident settlement:
- Settlement money received to replace income and benefits while an injury has kept you out of work.
- Property damage compensation, such as car repair or replacement costs.
- Money received for punitive damages. This is a less common form of compensation for California traffic accident victims. A judgment for punitive damages is assessed to punish a driver or a delivery or trucking company for extreme negligence. It is money that’s taken from the at-fault party as an extra penalty for their reckless, almost intentional behavior, that caused an accident. It’s meant to punish the guilty driver or business, but the victim of the accident would still receive the money paid for the fine. Any award received for punitive damages might be taxed.
You can find information on our page about reporting personal injury settlements on your taxes.
Contact a California Truck Accident Lawyer
Parts of a settlement award or court judgment are taxable. To figure out what is and isn’t taxable, you should trust the expertise of a California tax professional when you file your taxes.
But before you worry about taxes, you may need help in securing full compensation after a truck accident. Speak with a skilled Maison Law Truck Accident Attorney after a collision caused by a truck driver’s mistake leaves you or a loved one with a serious injury. It’s important to know about every benefit available to you and your family because an insurance representative won’t be informing you about all of your options.
Contact Maison Law for a free, no-obligation consultation. It’s a no-risk way to find out what your injury is worth and what you should demand from insurers. If you require our help to take on a trucking company, you don’t need any money to hire us. We don’t get paid unless we win your case for you. Then our fee is taken from the settlement money an insurance company is forced to pay you.
