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Save Settlement Agreement in JPG

Save Settlement Agreement in JPG

Aug 6th, 2022

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How to Save Settlement Agreement in JPG

4.8 out of 5

46 votes

Attorney Dan Schwartz addresses a question from Bob in Wilmington, Delaware, regarding the tax implications of a car accident settlement. Bob's previous attorney, now disbarred, did not clarify whether taxes are owed on the settlement. Schwartz emphasizes that his response is not legal advice but offers to review Bob's settlement documents and any related lawsuits. Generally, he states that personal injury settlement proceeds are not taxable if they compensate for bodily injury or sickness, such as from a car accident or slip and fall. He also suggests checking IRS Publication 43-45, which discusses the taxability of settlements for further information.

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