When you’re hurt in a serious South Carolina accident, you’re probably worried about getting the maximum settlement for your claim. You shouldn’t have to pay out of pocket for something the careless at-fault party did, right?
But getting fairly compensated is only part of your concerns. You also need to know whether you’ll have to pay taxes on your personal injury settlement.
Your personal injury lawyer can help you determine the compensation you’re owed and give you an idea of what kind of tax burden you should expect once you’ve been compensated.
Your South Carolina Settlement May Be Tax-Exempt
When you’re hurt in an accident, the compensation you receive should cover the costs of your losses, which you wouldn’t have suffered if the at-fault party had done their duty to be careful.
That money is meant to make up for something that was, in essence, taken from you by someone else’s negligence. So why should you have to pay taxes on it? At the federal level, you don’t.
At the state level, the question of whether you have to pay taxes on an injury settlement becomes less clear. The answer depends on the types of damages for which you receive compensation. Our SC personal injury lawyers can provide resources to help you understand how this rule might apply to your eventual settlement.
Taxes or Not, Your Personal Injury Claim Is Worthwhile
Even if you eventually have to pay some taxes on the settlement you fight for and receive for your injuries, it’s hard to imagine a scenario in which the taxes outweigh the benefits of receiving justice and compensation for what you’ve been through.
While taxation of personal injury settlements is an important consideration, it likely shouldn’t make or break your decision to pursue a personal injury settlement in South Carolina. Still, if you have questions or concerns, you should never hesitate to contact an experienced attorney at our firm.
Discuss Your Personal Injury Settlement with a Lawyer
When it comes to a personal injury settlement, you want to know that you’re getting the maximum value out of it. But it can be tough to determine what part of your settlement you’ll get to keep.
The good news? Your South Carolina personal injury lawyer from HawkLaw, PA can guide you. Hawklaw has personal injury lawyers in Spartanburg, Columbia, Greenville, and Charleston. Set up your free consultation* by calling 888.HAWK.LAW (429-5529) or completing the online contact form below.