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I was hit by a car back in 2015. I was walking in across…

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I was hit by...

I was hit by a car back in 2015. I was walking in across walk. we settled this year. am I going to have to pay taxes on the money from my injuryies

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I was walking from a well lighted street corner in a cross walk i hit the button so i proceeded to walk i noticed out of the corner of my eye that the suv was not going to stop. he stopped after he hit me

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I suffered pain i could not work for almost 9 months. i lost my job, my apt. it put my marriage in trouble. i was in a lot of pain i had to go under physical therphy, councling, it was a big burden on myself and my children. plus i had to go under surgery because i messed up my teeth from the acciedent and i had to have them pulled out of my mouth. i am not happy at all and very depressed from the accident

Submitted: 4 months ago.Category: Tax
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Answered in 5 minutes by:
12/12/2017
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 4 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,008
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Customer reply replied 4 months ago
hi my name is***** was woundering if I am going to have to pay for taxes on my settlement from2015
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 4 months ago

Hi Karen. My name is Brian.

Your award for medical costs is likely tax free unless you paid and deducted those costs already.

Punitive damages, punishing your opponent for their actions, are taxable.

Lost wages awards are taxable.

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Customer reply replied 4 months ago
On my settlement i went out after all of my medical bills and my lawyer, was paid off. i went and bought me a trailer to live in i also bought myself a van. i also paid for my husband 2 sons, 2daughters, motels to live in do to us becoming homeless after my accident. i bought my daughter a car too. plus paid for a awyning for my trailer too
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 4 months ago

Your settlement agreement will spell out what you were paid for. Most taxable awards are paid out after withholding, which will also be in the agreement.

Look for lost wages in your agreement, and see if taxes were withheld. If so, you should be ok. It doesn't matter what you spent the $$ on.

Please rate to complete your request. Positive feedback is appreciated. I'mCustomer I

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Customer reply replied 4 months ago
I did pay on my dental bill because that was the only way that they would see me after my accident. i got rebursed for it too in my settlement. i am still in a lot of pain my from acciedent. i do not have no more money left from my settlement. i do have all the receipts for what i purchased from it. i even lost our stuff in storage too. because my husband could not pay everything welli was unable to work
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 4 months ago

That's the part of injury settlements that never gets any press. People's lives are shattered while the lawduit goes through the process. It sounds like you're close to where you were before the accident, and you have injuries that still need treatment.

Again, checking the lawduit agreement is the only way to know for sure, but it doesn't sound like you have any taxes to pay.

Please rate when I have answered your questions.

Customer/p>
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