Do You Pay Taxes on Personal Injury Settlements?

*Please note that we are not tax attorneys or accountants. You should always consult with your tax professionals concerning your taxes.*

Video Transcription:

One of the biggest misconceptions about personal injury settlements is that you pay tax on them. The good news is you do not.

Your settlement money is triple tax-exempt, which means you don’t pay federal, state, or local income tax on them. That’s true even if your settlement includes lost wages which you’d normally pay tax on.

If you have any more questions about this, or if you or someone you know has been injured due to the fault of someone else, please give us a call at Flager Law, we’d be happy to help!