Personal Injury Law
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The language of the release is pretty boilerplate. It is correctly worded. The question of whether the settlement funds will be taxable depends on what they are to compensate for you for. If it is for medical bills, pain-and-suffering and attorneys' fees, it is not taxable. If it is for lost wages, then it is taxable, because if you had made wages, they would have been taxable. There is nothing that can be done in the settlement agreement to affect taxation unless the agreement specifies what the settlement money compensates you for. But with no admission of liability on the defendant's part, that is quite difficult if not impossible to do.
I see that you are in AZ. are the laws the same in Florida?
I am trying to email expert back still offline. bad experience. Bad service I tried to respond with what my account asked and you are offline.
Tax law is tax law is tax law. It is federal law, so yes, it is the same everywhere.
By the way, the only reason I left before is because it said you entered and then exited the chat without posting anything.
Do you have any additional questions?
I am going to leave this chat now. I am not going offline. If you have any additional follow-up concerns, type them here, and Just Answers will send me an email notifying me. If not, please change your rating of my service.
I am sorry. I will change the rating. My accountant told me that if they state that this was listed as Physical Personal Injury and request that I do not get a 1099, the money would not be taxed.
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