Q Do I have to pay income taxes on my car accident injury settlement?
APersonal injury settlements are generally NOT taxable. Of course, injury cases in Pennsylvania or New Jersey come in many different forms. The Bucks County injury attorneys at Saile & Saile LLP often represent victims of serious auto accidents in PA and NJ. Settlements from car accident cases in Pennsylvania are not usually taxable. The same goes for auto accident cases in New Jersey.
Today, it is difficult to recovery full and fair compensation for your injuries. Good thing the government does not usually tax personal injury settlements. But beware, there are certain types of injury case settlements that do require the payment of income taxes such as injury cases that involve punitive damages, emotional distress, and interest earned on injury settlements or jury verdicts.
Depending on your income levels, income tax rates usually range in the 20-40% range. Before you settle an injury case in Pennsylvania or a auto accident injury case in NJ, be sure to ask your injury attorney about whether or not you will have to pay income taxes on your injury settlement.
If you have been injured in a Bucks County accident, a Mercer County, NJ accident, or a Philadelphia accident, download a FREE copy of our informative Personal Injury Guidebook so that you can learn the basics of personal injury claims. Beware of the other driver's insurance company. Auto insurance companies will attempt to speak with you, take your statement (to only be used against you), and may try to get you to settle your injury case for unfair compensation. Call us or fill out the simple injury case submission form to schedule a free review of your PA or NJ injury case.