Facebook View

Will I Have to Pay Taxes on My Personal Injury Settlement?

Written by John D. Hawkins on . Posted in .

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. 

HawkLaw Fights
To Win
Contact us for a free consultation*

"*" indicates required fields

Disclosure
Completing this online form does not constitute or create a lawyer-client relationship. HawkLaw respects your privacy and requests that you do not share sensitive or confidential information in online forms. This form is not confidential.
disclosure agreement*
This field is for validation purposes and should be left unchanged.


Written By John D. Hawkins


John David Hawkins is the Founder and Owner of HawkLaw. He has been licensed to practice law in South Carolina since his graduation in 1994 from the University of South Carolina School of Law. Focusing on litigation, Mr. Hawkins is experienced handling Worker’s Compensation, Personal Injury, Social Security Disability, Administrative Law, and Criminal Law matters.

Recent Blog Posts

Contact us for a Free Consultation*

*Disclaimer: Cases are principally handled out of Greenville, Spartanburg, Charleston, and Columbia offices. Case "worth" is determined from the total settlement amount. The settlement amount shown are gross numbers before attorney’s fees and cost deductions. The % fees will be computed before deducting expenses and costs from the gross settlement. No fees or costs with no recovery. The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. The specific results achieved for clients shared on this website do not imply that similar results may be achieved for other clients. Read Our Full Disclaimer. Read Our Privacy Policy