I just got some money from an accident settlement. After all medical bills are paid, I will still have a few thousand for my troubles. Is this taxable?

BTW:
Wreck photo...

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Posted by SlowFlowPro

Simple Solutions to Complex Probs

Member since Jan 2004

423365 posts

Posted on 6/25/09 at 11:33 am to buzwa

when i was in law school losses for personal injury were not taxable. THIS IS NOT TAX ADVICE OR LEGAL ADVICE.

IRS changes shite all the time

quote:
"Section 104(a)(2) excludes from gross income the amount of any damages received (whether by suit or agreement) on account of personal injuries or sickness. The term ?damages received (whether by suit or agreement)? means an amount received (other than workmen's compensation) through prosecution of a legal suit or action based upon tort or tort type rights, or through a settlement agreement entered into in lieu of such prosecution."

quote:
IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

This post was edited on 6/25/09 at 11:35 am

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Posted by buzwa

Member since Sep 2006

2471 posts

Posted on 6/25/09 at 11:42 am to SlowFlowPro

Appreciate the info, it at least points me in the right direction.

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Posted by Cold Cous Cous

Bucktown, La.

Member since Oct 2003

15049 posts

Posted on 6/25/09 at 11:43 am to buzwa

shite. Hope you were driving the big rig

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Posted by Will Cover

St. Louis, MO

Member since Mar 2007

38592 posts

Posted on 6/25/09 at 12:44 pm to Cold Cous Cous

Before you accept a quick check, check with me.

If you've been hit by a big rig, let's take them to court and they won't be so big.

Seems like I have heard this somewhere before.

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Posted by BrockLanders

By Appointment Only

Member since Sep 2008

6507 posts

Posted on 6/25/09 at 12:48 pm to buzwa

This man will know...

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Posted by Y.A. Tittle

Member since Sep 2003

101652 posts

Posted on 6/25/09 at 1:05 pm to BrockLanders

The Lion!

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Posted by Cold Cous Cous

Bucktown, La.

Member since Oct 2003

15049 posts

Posted on 6/25/09 at 1:20 pm to Y.A. Tittle

too bad E Eric got disbarred

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Posted by Poodlebrain

Way Right of Rex

Member since Jan 2004

19860 posts

Posted on 6/25/09 at 1:51 pm to buzwa

Compensatory payments from personal injury cases are not taxable. If you were awarded any punitive damages those amounts would be taxable.

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Posted by HermnDaMonstaJohson

Houston

Member since Dec 2007

7 posts

Posted on 6/25/09 at 2:44 pm to Poodlebrain

also, if any portion of the personal injury settlement was for confidentiality, that portion would be taxable as well.

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Posted by sneakytiger

Member since Oct 2007

2473 posts

Posted on 6/25/09 at 3:13 pm to buzwa

Is that a sugarcane truck? Those guys are the worst...

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Posted by arowana

Metairie

Member since Aug 2007

1732 posts

Posted on 6/25/09 at 8:44 pm to sneakytiger

You should have put the Womack on them!!!

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Posted by buzwa

Member since Sep 2006

2471 posts

Posted on 6/25/09 at 9:53 pm to arowana

Thanks for the info everyone.

Yeah it was a damn sugar cane truck. Every 18 wheeler driver on the highway is required to have a commercial drivers license... not sugar cane truck drivers! I was stopped b/c a school bus was letting children on in the right lane, and the cane truck driver didn't notice the bus stopped and swerved into my lane to avoid hitting it. The guy offered me a cigarette and then told me he didn't realize how hard he had to pull the emergency brake ...