Hello. My name is Zachary Cole with Probinsky & Cole. I’m going to speak very briefly about what is and what is not taxable in a settlement or a jury award from a lawsuit that you would file.
So things that are not taxable are things like medical bills for things you’ve already incurred expenses for, future medical bills, pain and suffering, physical pain and suffering which is a big one. Things that can be taxable are any punitive damages which are fairly rare but those do come up in cases sometimes.
The big one is loss of earnings or earning capacity. So any sort of wage claim would be taxable and then sometimes emotional damages are taxable as well. But most lawsuits are primarily composed of medical bills, medical expenses and pain and suffering. So the good news is when you get a settlement check or when you get a check post-verdict from a jury, the vast majority of that is yours tax-free.
If you have any questions about this or anything else, feel free to give us a call at Probinsky & Cole at 941-371-8800. Thank you.
