Some of you may be wondering how your personal injury settlement will effect your tax return. Personal Injury settlements are typically tax free as stated in IRS Publication 4345:
“If you receive a settlement for personal physical injuries or physical sickness and did not take an itemized deduction for medical expenses related to the injury or sickness in prior years, the full amount is non-taxable. Do not include the settlement proceeds in your income.”
See your tax adviser to make certain this applies in your situation. If you have been injured and would like someone to review your case, please contact the Schiller Law Injury Team today at 317-578-2100.