Taxes on Personal Injury Settlements

Personal injury settlements are a way for you to recover lost funds, limit the suffering caused by your injury, and secure the right kind of treatment for your injuries. Most insurance providers will offer personal injury settlements immediately even if you are still getting treatment from the hospital. A personal injury settlement is actually a way out for insurance providers, but it can benefit you as well. For one, if you accept a personal injury settlement, this will mean that you want have to go to court. Cases like this often take a long time to litigate before you can achieve the final resolution.

Say you were in an accident and you sustained injuries to your face, knees, and back. You filed a personal injury complaint and fortunately, you received a settlement from your lawsuit. The settlement totaled about $50,000 but you will not get that in full. You will have to pay your lawyer his fees and your health insurance will be reimbursed for as much as $2,000. So you ask, do you still have to pay income taxes on your personal injury settlement? The answer is yes.

The complaint you filed that resulted to a settlement agreement has major tax penalties. As a matter of fact, there is a tax law called "the origin of the claim". This states that if the settlement is regarding a tax-exempt matter, as in the case of physical injury, the settlement received should therefore be tax-free. On the other hand, punitive or disciplinary damages are not exempt from tax. Punitive damages, also known as exemplary damages, are intended to discourage the behavior the defendant engaged in and punish him for that. They are not intended to compensate you.

For further and more detailed discussions of taxes on personal injury settlement --case details, tax consequences, and the like, set up a meeting with a certified and reliable tax consultant.

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Back Injury Settlements

The major causes of back injuries are work related and accidents involving one or more vehicles. Strenuous activities including bending, twisting, heavy lifting or standing/sitting in one position are also reasons for back injuries. Back injury settlement amounts are decided on the basis of fault, extent of injury, wages lost and predicted duration for recovery.

The back is a complicated system of muscles, ligaments, bones and nerves. When injured, damages can be severe and traumatic. Automobile accidents can cause severe injuries to the thorax, cervix and lumbar regions of the back. When damage is caused to the soft spinal tissue, it can be fatal. Recovery for survivors is slow and painful.

The damages awarded to victims depend on the extent of injuries and the age and physical health of victim prior to the accident. In the workplace, people often sustain injuries involving lifting and twisting. These injuries include slipped discs and torn ligaments. Employees of laundry and food delivery services, courier companies, postal delivery services, hospital nurses and lumber mills workers are at are particularly susceptible because their work involves a lot of lifting heavy loads and other kinds of strenuous activity. An employee can be held responsible for a personal injury settlement if it is proven that the plaintiff works in stressful conditions arising from shortage of staff, heavy workload, extended periods of overtime, etc.

Minor back pain injuries heal quickly, within a few days of bed rest. But severe injuries, especially injuries to the spinal cord, cause disability, pain and mental trauma. Treatment is expensive, often needing extensive hospitalization, surgery, medication and therapy. Keeping this in mind, it is not unusual to see a personal injury settlement award for as much as $1 million for a first time back injury, if there was no pre-existing problem with the back.

Back injuries that seem minor can become critical over time, so it always best to consider taking the advice of a personal injury settlement attorney before settling.

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Facial Injury Settlements

In car accidents mostly, it is the face that commonly sustains injuries that is why facial injury settlements are common as well. You can sustain facial injuries in situations like being hit by a piece of glass from a shattered window, by coming in close contact with your car's air bag or steering wheel, or many other ways in an accident. Engaging in sports, accidental falls, and fighting can cause facial injuries as well. A facial injury includes damage to any part of your face like the eyes, mouth, cheekbones, tongue, teeth, and nose. Even blindness can be caused by severe facial injuries.

One permanent result of facial injuries is scarring. Scars are dried marks from wounds on the face. Facial scarring may be caused by the injury itself or by related surgery during the treatment of the injury. For both children and adult, scars resulting from accidents may be traumatizing because they may live with the scars for a lifetime, be the object of ridicule by other people, have trouble being accepted in different institutions (educational, workplace, etc.), have to undergo future painful surgeries, and/or face emotional trauma associated with scars.

However, medical expenses associated with facial treatments, operations, and surgeries due to injuries can be extremely expensive. Who would want to spend so much from something he was not actually responsible for doing? So it is important to record and document any injury that involves your face especially if it is a result of an accident caused by another person's negligence. It is well within your right to sue for damages as a result of someone's negligence. Also, at the earliest possible moment after the injury, contact an appropriate lawyer who can help you file a case and get a personal injury settlement right away.

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Neck Injury Settlements

Neck injuries are caused by automobile accidents, or by physical trauma like slips and falls. Most neck injuries are not serious, but some that are seemingly innocuous can cause major problems later on. It is always best to consult a physician and a personal injury settlement attorney if you have been involved in an accident and suffer a neck injury.

Whiplash neck injuries are notorious, because they show no visible symptoms other than some discomfort that vanishes over time. Serious consequences like paralysis, disability and numbness can develop later on. The damage to the soft spinal cord tissue shows up after years in the form of chronic pain, paralysis and, in some cases, death. Take the case of a woman who was involved in a car accident and settled for a small compensation amount for what she thought was a minor neck sprain. Her injury became so serious over the years that she was ultimately confined to a wheelchair, unable to walk or move her lower body. Because she had already settled her personal injury claim, she could not sue again. Her mounting medical bills forced her into bankruptcy.

Always hire an experienced attorney to represent you in a neck injury case. Neck injuries have a very uncertain prognosis, and what seems minor, can escalate into paralysis. Only an experienced attorney will know how to claim compensation for an injury not yet serious, but having chances of becoming so. The lawyer needs to understand medical facts and discuss the outcome of the whiplash injury with physicians. If he is not able to convince the jury a fair compensation is needed because an injury might worsen over the years, it could lead to serious financial loss for the victim.

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Personal Injury Settlement Amounts

The amount of personal injury settlement depends on many factors, and there is no fixed value for any compensation package. The amount settled on depends on factors like age of the claimant, severity of injury, net financial loss, medical expenses incurred, medical prognosis, extent of liability, etc.

There is no minimum or maximum compensation amount limit set by law, since amounts vary greatly from case to case. The following examples give you an idea of the compensation due in cases of personal injury.

A construction company, for example, paid a compensation of $2,000,000, when held liable for the death of a young man caused by unsafe construction. A retail store paid out $1,000,000, when a claimant suffered serious neck injuries when a display fell on her. A nursing home paid $1,000,000 for medical negligence when an Alzheimer's patient was injured due to the absence of a nurse on duty. Injury due to an automobile accident aggravated a victim's previous neck injury, and the he was paid $5,000,000 in compensation.

The highest compensation values are given to those plaintiffs who are young and healthy. This is because the jury takes into consideration the financial loss and mental anguish caused to those victims who would, in all probability, have been highly productive had they not been injured or handicapped.

Severity of injury is another factor. A first degree burn which heals quickly and leaves no scars is compensated by a minor amount. But a third degree burn, if spread over 50% of the body, for example, can claim up to $8,00,000, as in a case where a coal mining company was sued when a minor needed an amputation due to the company's negligence.

Lost wages are also considered when settling such cases. The court takes into account the occupation of the claimant, education levels and future prospects when awarding a compensation amount.

It is also important that the plaintiff come across as someone sincere who genuinely needs help, and not an opportunist just waiting to sue due to financial motives. The personal injury settlement amounts are meant to help those in distress get on with life, and not simply a financial "dole".

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Facial Injury Settlements

In car accidents mostly, it is the face that commonly sustains injuries that is why facial injury settlements are common as well. You can sustain facial injuries in situations like being hit by a piece of glass from a shattered window, by coming in close contact with your car's air bag or steering wheel, or many other ways in an accident. Engaging in sports, accidental falls, and fighting can cause facial injuries as well. A facial injury includes damage to any part of your face like the eyes, mouth, cheekbones, tongue, teeth, and nose. Even blindness can be caused by severe facial injuries.

One permanent result of facial injuries is scarring. Scars are dried marks from wounds on the face. Facial scarring may be caused by the injury itself or by related surgery during the treatment of the injury. For both children and adult, scars resulting from accidents may be traumatizing because they may live with the scars for a lifetime, be the object of ridicule by other people, have trouble being accepted in different institutions (educational, workplace, etc.), have to undergo future painful surgeries, and/or face emotional trauma associated with scars.

However, medical expenses associated with facial treatments, operations, and surgeries due to injuries can be extremely expensive. Who would want to spend so much from something he was not actually responsible for doing? So it is important to record and document any injury that involves your face especially if it is a result of an accident caused by another person's negligence. It is well within your right to sue for damages as a result of someone's negligence. Also, at the earliest possible moment after the injury, contact an appropriate lawyer who can help you file a case and get a personal injury settlement right away.

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Personal Injury Settlement Amounts

The amount of personal injury settlement depends on many factors, and there is no fixed value for any compensation package. The amount settled on depends on factors like age of the claimant, severity of injury, net financial loss, medical expenses incurred, medical prognosis, extent of liability, etc.

There is no minimum or maximum compensation amount limit set by law, since amounts vary greatly from case to case. The following examples give you an idea of the compensation due in cases of personal injury.

A construction company, for example, paid a compensation of $2,000,000, when held liable for the death of a young man caused by unsafe construction. A retail store paid out $1,000,000, when a claimant suffered serious neck injuries when a display fell on her. A nursing home paid $1,000,000 for medical negligence when an Alzheimer's patient was injured due to the absence of a nurse on duty. Injury due to an automobile accident aggravated a victim's previous neck injury, and the he was paid $5,000,000 in compensation.

The highest compensation values are given to those plaintiffs who are young and healthy. This is because the jury takes into consideration the financial loss and mental anguish caused to those victims who would, in all probability, have been highly productive had they not been injured or handicapped.

Severity of injury is another factor. A first degree burn which heals quickly and leaves no scars is compensated by a minor amount. But a third degree burn, if spread over 50% of the body, for example, can claim up to $8,00,000, as in a case where a coal mining company was sued when a minor needed an amputation due to the company's negligence.

Lost wages are also considered when settling such cases. The court takes into account the occupation of the claimant, education levels and future prospects when awarding a compensation amount.

It is also important that the plaintiff come across as someone sincere who genuinely needs help, and not an opportunist just waiting to sue due to financial motives. The personal injury settlement amounts are meant to help those in distress get on with life, and not simply a financial "dole".

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Back Injury Settlements

The major causes of back injuries are work related and accidents involving one or more vehicles. Strenuous activities including bending, twisting, heavy lifting or standing/sitting in one position are also reasons for back injuries. Back injury settlement amounts are decided on the basis of fault, extent of injury, wages lost and predicted duration for recovery.

The back is a complicated system of muscles, ligaments, bones and nerves. When injured, damages can be severe and traumatic. Automobile accidents can cause severe injuries to the thorax, cervix and lumbar regions of the back. When damage is caused to the soft spinal tissue, it can be fatal. Recovery for survivors is slow and painful.

The damages awarded to victims depend on the extent of injuries and the age and physical health of victim prior to the accident. In the workplace, people often sustain injuries involving lifting and twisting. These injuries include slipped discs and torn ligaments. Employees of laundry and food delivery services, courier companies, postal delivery services, hospital nurses and lumber mills workers are at are particularly susceptible because their work involves a lot of lifting heavy loads and other kinds of strenuous activity. An employee can be held responsible for a personal injury settlement if it is proven that the plaintiff works in stressful conditions arising from shortage of staff, heavy workload, extended periods of overtime, etc.

Minor back pain injuries heal quickly, within a few days of bed rest. But severe injuries, especially injuries to the spinal cord, cause disability, pain and mental trauma. Treatment is expensive, often needing extensive hospitalization, surgery, medication and therapy. Keeping this in mind, it is not unusual to see a personal injury settlement award for as much as $1 million for a first time back injury, if there was no pre-existing problem with the back.

Back injuries that seem minor can become critical over time, so it always best to consider taking the advice of a personal injury settlement attorney before settling.

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Neck Injury Settlements

Neck injuries are caused by automobile accidents, or by physical trauma like slips and falls. Most neck injuries are not serious, but some that are seemingly innocuous can cause major problems later on. It is always best to consult a physician and a personal injury settlement attorney if you have been involved in an accident and suffer a neck injury.

Whiplash neck injuries are notorious, because they show no visible symptoms other than some discomfort that vanishes over time. Serious consequences like paralysis, disability and numbness can develop later on. The damage to the soft spinal cord tissue shows up after years in the form of chronic pain, paralysis and, in some cases, death. Take the case of a woman who was involved in a car accident and settled for a small compensation amount for what she thought was a minor neck sprain. Her injury became so serious over the years that she was ultimately confined to a wheelchair, unable to walk or move her lower body. Because she had already settled her personal injury claim, she could not sue again. Her mounting medical bills forced her into bankruptcy.

Always hire an experienced attorney to represent you in a neck injury case. Neck injuries have a very uncertain prognosis, and what seems minor, can escalate into paralysis. Only an experienced attorney will know how to claim compensation for an injury not yet serious, but having chances of becoming so. The lawyer needs to understand medical facts and discuss the outcome of the whiplash injury with physicians. If he is not able to convince the jury a fair compensation is needed because an injury might worsen over the years, it could lead to serious financial loss for the victim.

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