If you get into a car crash and get injured, taxes are probably one of the last things that you want to think about. They have to be a consideration if you decide to sue for damages though. This is because some parts of a settlement can be taxable. A San Angelo, Texas auto accident lawyer from our firm can tell you more about how this works.
When is a Car Crash Settlement Taxable?
In most cases, a car crash settlement won’t be taxable. This is true even when your settlement helps address lost wages. This is because the damages are “compensatory.” You are being compensated for your injuries and what you experienced as a result of the crash. The damages are not seen as income as a result.
Which Damages Are Taxable?
There are some cases where damages are taxable. If the damages are punitive and not compensatory, that can affect your tax bill. Punitive damages are not awarded in every case. In fact, they are actually pretty rare.
This is because punitive damages are only paid when a defendant takes actions that are particularly negligent. When it comes to car crashes, an unlicensed driver who uses drugs might be a good example of someone who gets hit with punitive damages. Their behavior has to be far beyond the scope of typical negligence.
So if punitive damages are paid out as a part of your settlement or verdict, this is something to be aware of.
Why Should I Hire a Lawyer If I Have Been in a Crash?
You are not required to hire a lawyer when you make a personal injury claim, but an experienced attorney can do a lot to help you with your case. We can:
- Help you gather evidence, like surveillance footage of the crash
- Connect you with expert witnesses like crash reconstruction experts or medical professionals
- Negotiate with insurers for you
- Handle all communications on your behalf
- Prep you for testimony and depositions
- Field settlement offers
- Keep you updated on your case
How Long Do I Have to Sue For Damages?
You should also know that you do not have unlimited time to sue for damages. No matter how compelling of a case you build, it is likely that it will be thrown out if you wait more than two years to file it. Act as quickly as you can and get in touch with our legal team to get the ball rolling.
Contact Our Law Firm Today
So if you have been hurt in a crash and you want to sue for compensation, you do not have to do it on your own. Contact the Mathis Law Firm and ask about our free case consultations. We want to learn more about your situation so that we can help you negotiate for a fair settlement.
