Is a settlement payment taxable?

After receiving financial benefits or compensation in a personal injury case, many people do not know if they are required to pay taxes on the amount. In fact, the Internal Revenue Service (IRS) will generally not tax any personal injury settlement rewards. Even though the individual sometimes receives a large amount of money, personal injury settlement amounts are typically not considered taxable. However, there is one major exception: financial awards for lost income may be subject to taxes because it counts as income.

If you have any questions regarding your personal injury settlement, contact the knowledgeable Louisville personal injury attorneys of Sampson Law Firm today at 502-584-5050 to schedule a free consultation with one of our experienced lawyers.