Taxing Compensation Awards
When a person suffers because of a physician’s negligent behavior, they may file a medical malpractice lawsuit. If the lawsuit is successful, the victim may receive either a court award or a settlement amount. This money can help the victim to pay for his or her injury-related expenses. However, taxation remains a serious concern for some, as taxes can reduce the total amount of money an individual gets to take home by a considerable amount.
If you have been injured by a medical professional and you have questions about the compensation you may be entitled to, contact the Philadelphia medical malpractice lawyers of Lowenthal & Abrams, P.C., by calling .
Taxation and Compensation
In most personal injury cases, there are only a few instances in which the government will tax an award or a settlement. According to the federal tax code, the following types of compensation are considered non-taxable for the recipient:
- Injury compensation
- Compensation for medical bills
- Lost wages
- Compensation for a loss of personal relationship
- Compensation for emotional distress
Occasionally, the government may tax additional funds that are attached to these forms of compensation. For example, if there is interest added on to the amount due to the time span of the trial, the interest alone will be taxed. Additionally, the government may tax punitive damages.
If you have suffered because of a medical professional’s negligence and you are interested in pursuing a lawsuit for compensation, contact the Philadelphia medical malpractice attorneys of Lowenthal & Abrams, P.C., at today.