Commercial Vehicle Case
Carbon Monoxide Poisoning Case
Confidential Product Defect Settlement
Confidential Carbon Monoxide Poisoning Settlement
Confidential Premises Liability Settlement
Sam represented a man injured in a crash with a commercial truck.
Sam represented the mother of a young man who died in a car accident.
Our client suffered injuries to her brain and back when she was rear ended by a person looking at his phone.
This case involved a motorcycle accident where two different vehicles were at fault for our client’s injuries.
Sam represented a client who was injured in a motorcycle wreck.
Confidential Commercial Vehicle Accident Settlement
Sam represented the family of a woman who died after she fell on a dangerous condition.
Disclaimer: Each case is unique and previous results are not a guarantee of future results. Clients may be responsible for costs.
• Fee comparisons must be factually substantiated (25% vs. 33-40% industry standard)
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Most people who receive a settlement for personal injuries do not have to pay income tax on the proceeds. The main issue is the specific types of damages you suffered and for which you are compensated. The IRS has provided the following general rules.
Compensation for pain and suffering is often a large part of a settlement. Money compensating you for emotional distress, pain and suffering, or mental anguish caused by a personal injury is non-taxable. Because these settlement proceeds are not taxed, they should not be reported to the IRS as income.
Medical care is expensive, and serious accidents can lead to serious medical bills. Thankfully, money compensating you for medical expenses caused by the accident are usually non-taxable and not reported as income. The only exception is if you took an itemized deduction for medical expenses on your taxes in the years prior to the settlement. If you did deduct the medical expenses prior to settlement, then you must report any benefit you received from this deduction as “Other Income” on line 21 of Form 1040. Consult a tax professional to ensure proper reporting.
Injured people cannot work. Many settlements contain funds to compensate you for wages you lost out on while you were too hurt to work. The IRS characterizes the lost wages portion of the settlement as taxable wages that are subject to Social Security and Medicare withholdings. In short, there is a lot of tax owed on a settlement for lost wages. Accordingly, most personal injury settlements do not specifically state that they are compensating an injured person for lost wages.
What if the other side does not settle and you have to go to trial? In Colorado, if you go to trial and receive a judgment to compensate you for your injuries, then you will be awarded 9% compounding interest from the date of your injury. Because trial usually occurs years after the injury, this can be a huge number. Sadly, interest awarded after trial on your personal injury claim is taxable and should be reported to the IRS.
The following is a quick summary:
Recovering from an accident is hard. It is even harder with a large tax bill. Work with your Fort Collins personal injury attorney and tax professional to properly report and structure your settlement. This will keep more money in your pocket.
If you or a loved one has been seriously injured, please fill out the form below for your free consultation or call us at (970) 471-7170
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This page has been written, edited, and reviewed by our team of legal writers following strict editorial guidelines.
If you or a loved one has been seriously injured, please fill out the form below for your free consultation or call us at (970) 471-7170.
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