Is the money I receive from a personal injury settlement taxable?

A. In the United States, typically, the money awarded in a personal injury settlement is not taxable. Theofficial statement from the Internal Revenue Serviceregarding the tax-ability of personal injury settlements is as follows:

“If you receive a settlement for personal physical injuries or physical sickness and did not take an itemized deduction for medical expenses related to the injury or sickness in prior years, the full amount is non-taxable. Do not include the settlement proceeds in your income.”

However, there are exceptions. A reimbursement for medical care generally is not taxable. However, it may reduce your medical expense deduction. If you receive reimbursement for an expense you deducted in an earlier year, itemized deductions that were later reimbursed by the settlement, then that amount would be taxable.

This brief general discussion of tax issues is not meant to be legal advice. If you have questions, consult a tax attorney.

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Our Case Results

Brain Injury

While timbering in WV, a heavy equipment operator sustained a permanent brain injury while performing the duties of his job. What price can you put on the loss of a fully functioning, fully reasoning brain? Jeff Robinette was able to negotiate a settlement that was annuitized to provide for this man for the rest of his life.

Car Accident Injuries

Jeff Robinette was hired by a young woman who had sustained permanent injuries to her foot due to an auto collision. The insurance company offered such a small amount and dealt with her in such a dismissive manner that the treatment of her case amounted to bad faith on the insurance company’s part. Jeff was able to obtain a substantial settlement which allowed this young woman and her husband to pay medical bills, buy a car and a home, and start building a future together.

Crushed Foot Injury

While working in Morgantown, WV for a large national retailer, our client, a young woman in her early twenties, was ordered to use equipment that she was not properly trained to use. In the course of attempting to complete her task, she sustained a severe crush injury to her foot. Due to this incident, our client lost full use of this foot for the rest of her life and was living with chronic, persistent pain.

Our firm was able to obtain a sizable settlement which took care of all her medical bills and future treatment for her foot injury. The settlement was ample enough to allow this young woman to go back to college and retrain for employment which will accommodate her permanent disability.

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Jeffery Robinette
Jeffery Robinette
FOUNDER
Jeffery Robinette is a West Virginia Personal Injury Lawyer based in Morgantown who represents individuals who have been seriously injured or killed due to motor vehicle collisions or catastrophic workplace accidents.
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My case was resolved favorably and I consider Jeff a TRUE friend.
Former Client
Construction Client
I am so glad I chose Robinette Legal Group to represent me in a recent car accident case.
Barbara
Car Accident Injury Client
I truly appreciate all his advice and help.
Betty
Contracts Client Client
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