Many clients often wonder if money received from an injury or death suit is taxable. While the short answer to this question is no, there are some exceptions of which clients should be aware.<\/p>\n
Sustaining an injury is difficult enough on its own, and having to bring a lawsuit to obtain proper compensation and payments for your injuries only makes it more complicated and stressful. It would almost be unbearable if a victim had to pay taxes on the compensation he or she receives for injuries. Fortunately, the government has recognized that injury settlements do not qualify as earned income. Rather, these settlements are intended to compensate the injured victim for the pain, suffering, and disabilities he or she has suffered at the hands of another\u2019s carelessness or negligence. As such, injury recoveries are not taxable.<\/p>\n
Section 104(a)(2) of the Internal Revenue Code excludes from a person\u2019s gross income any amounts received from (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Many clients often wonder if money received from an injury or death suit is taxable. While the short answer to this question is no, there are some exceptions of which clients should be aware. Sustaining an injury is difficult enough…<\/span><\/p>\n