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richanne96
richanne96, Attorney
Category: Personal Injury Law
Satisfied Customers: 280
Experience:  Attorney in private practice in Phoenix, AZ
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A medical firm is trying to settle a case with monetary value.

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A medical firm is trying to settle a case with monetary value. I need to know the wording they need to use so I don't get taxed on it. I live in the state of Florida. I need to send the Release they sent to me to make sure that it is legitimate and have you explain it. Make sure I understand.


FOR THE CONSIDERATION OF xxxxxxx, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned xxxxxxxxxxxxxxxxxx hereinafter called “Releasors,” do hereby release and forever discharge xxxxxxxxxxxxxxx, jointly and severally, including their agents, employees, shareholders, partners and associates thereof as well as their predecessors and successors in interest, hereinafter called “Releasees;” and all of the Releasees' agents, predecessors, successors, assigns, subsidiaries and parent corporations, none of whom admit any liability but all expressly deny any liability, from any and all claims, demands, damages, costs, loss of services, expenses, expense and compensation, actions, causes of action, or suits of whatsoever kind or nature, whether arising at law or in equity, which the undersigned may have had, may now have, or may hereafter have against the said Releasees because of matters, causes, happenings or things occurring prior to the date of this Release, including any and all damages of any kind, known or unknown, or to result hereafter from, including but not limited to, any and all treatment or care of xxxxxxxxxxxxxxxxxxx, and all of their agents, employees, shareholders, partners and associates thereof; and including but not limited to those matters pertaining to the treatment of xxxxxx right knee in 2013. It is specifically understood that the undersigned may have injuries or damages that are presently unknown and/or suspected, but we nevertheless wish to and hereby release all claims for any such injuries and damages regardless of whether they are incurred or become known in the past, present or future.
It is understood that the acceptance of the aforesaid sums and the execution and delivery of this Release is not to be considered as any admission of liability on the part of said Releasees, but is in full settlement and compromise of doubtful and disputed claims which have been or may be made against the Releasees and for which Releasees have denied and still deny liability. Further, the settlement herein is a recognition of the cost, expense and inconvenience of protracted litigation and is in no way intended to be construed as an admission of wrongdoing by or on behalf of any of the Releasees.

It is further agreed and understood that as specific conditions of the settlement herein that: (1) the existence of settlement between the parties and the amount thereof, as well as the identity of the Releasees, shall remain strictly confidential; and (2) Releasors will not provide any information in any form whatsoever regarding xxxxxx treatment by Releasees which mentions, discusses or refers to Releasees in any manner whether disparaging or otherwise, including but not limited to all form of social media and any other form of media such as newspapers and television.Page 2 of 3
This Release contains the entire agre1111ement between the parties hereto, and the terms of this Release are contractual and not a mere recital.
THE UNDERSIGNED FURTHER STATES THAT THEY HAVE CAREFULLY READ THE FOREGOING INDEMNIFYING RELEASE AND KNOW THE CONTENTS THEREOF AND SIGNS SAME AS THEIR OWN FREE ACT, AND HAVE NOT RELIED ON ANY REPRESENTATIONS MADE BY ANY OF THE PARTIES RELEASED HEREIN, THEIR ATTORNEYS, OR REPRESENTATIVES IN ARRIVING AT THIS DECISION.
IN WITNESS WHEREOF, we have hereunto set our hand and seal this _____ day of _________________________, 2013

richanne96 :

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.

Customer:

I see that you are in AZ. are the laws the same in Florida?

Customer:

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.

richanne96 :

Tax law is tax law is tax law. It is federal law, so yes, it is the same everywhere.

richanne96 :

By the way, the only reason I left before is because it said you entered and then exited the chat without posting anything.

richanne96 :

Do you have any additional questions?

richanne96 :

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.

Customer:

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.

richanne96 and 2 other Personal Injury Law Specialists are ready to help you
Customer: replied 3 years ago.

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.

Thanks for changing the rating. You accountant is correct, except that one component of personal injury compensation is for lost wages, and that is taxable. So long as your accountant who does your taxes treats the income correctly, you should be fine.

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