Are Wrongful Death Damages Taxable?

Personal Injury Lawyer

It seems like everything related to filing your taxes is complicated and hard to understand. Filing a wrongful death lawsuit is also quite complicated, which means it is especially complicated to consider whether or not the settlement from the suit is taxable. The truth is that some kinds of damages are taxable and some are not. This means it is very important to know whether you are on the hook or not when tax season rolls around. This guide will fully explain everything you need to know.

What Is Not Taxable?

First things first, some things are not taxable. Any damages that are compensating some kind of financial loss are usually not taxed. After all, you are simply being compensated for what is rightfully yours. The lawsuit should not make it so these items need to be taxed unfairly. For example, compensation for the medical bills the victim paid prior to death would not be taxed.

There is one major exception to this rule: lost wages. This is the income that the victim would have earned if the incident had never taken place. You can be compensated for this amount, but the income would have been taxed. Just like it is not fair to pay taxes on those medical bills compensation, it would not be fair to not pay taxes on that income.

What Is Taxable?

Most types of damages in a wrongful death lawsuit are taxable. Anything that is not compensation for a financial loss should be taxed. The IRS considers these to be forms of income, and must be taxed just like any paycheck. This includes:

  • Compensation for pain and suffering
  • Compensation for emotional distress
  • Compensation for loss of companionship
  • Punitive damages

Punitive damages are common in wrongful death cases. These types of damages refer to payments that the defendant must make simply as punishment. The judge may decide that the amount the defendant must pay as compensation is not enough to punish him or her. In these cases, extra damages are assigned which do not correspond to losses, but are punishment in and of themselves. These types of damages are also taxed.

Filing

If 100 percent of your settlement is not taxable, you do not even need to report it when you file your taxes. If any part of it is taxable, however, you need to report the full amount. You can claim whatever portion is not taxable as a deductible. Because this can be quite complicated, it is a good idea to speak with a tax professional and a wrongful death attorney,  like a Wrongful Death Lawyer, in  Lakewood FL.

Thank you to the experts at David & Philpot, P.L., for their contributions to wrongful death law. 

A Cruise Accident Lawyer You Can Trust

Personal Injury Attorney

When you or a loved one is injured while on a cruise, it is advisable to speak with a cruise accident lawyer for further advice. These cases can be complex and time consuming which is why it is important to retain a lawyer who has years of experience in handling them. A jack of all trades lawyer is simply not enough. A personal injury attorney understands how intricate cruise accident claims can be. Guided by a skillful mindset and extensive understanding of maritime law and other important legal considerations, we have successfully won millions of dollars for cruise accident victims. 

When a Cruise Ship Vacation Goes Wrong

Every year millions of people go on a cruise. Most have a fun time and encounter no unfortunate issues. Like any business who caters to thousands of people every day, accidents, errors, and mistakes will occur. Sometimes there is no fault involved, but other incidents are the result of carelessness, wrongdoing, or negligence. When this is a factor, it’s important to find out what a cruise accident lawyer has to say. 

The Most Common Cruise Ship Accidents 

There are a number of injuries and accidents that could happen while on a cruise ship. The following are some common examples that a cruise ship lawyer from has seen in a claim:

  • Tender boat accident;
  • Gangway accident;
  • Trip/slip and fall accident;
  • Sexual assault or battery;
  • Automatic door accident;
  • Injury from an unbolted object;
  • Medical malpractice;
  • Food poisoning;
  • Excursion accidents;
  • Drowning or near drowning;
  • Overboard accidents;
  • Disappearances;
  • Fires;
  • Contractual breaches; and
  • more. 

Regardless of what happened or how severe your injury was, it is possible that you may be eligible for compensation that covers lost wages, medical expenses, pain, suffering, and more. 

Steps to Take After Being in A Cruise Ship Accident

Following your accident, there are a few steps that you may want to take to ensure your claim is fully documented. 

  1. Report the incident to ship personnel as soon as it happens. 
  2. Seek medical attention at the ship’s infirmary (you may have taken this step first)
  3. Request the ship personnel to file an incident report. Try obtaining a copy of this before you leave the cruise ship.
  4. Record the date, location, time, and any facts surrounding the accident. 
  5. Take photographic evidence of the scene, the surrounding, and your injuries
  6. Get the contact details from any witnesses

Understanding the Laws that Apply to Your Claim 

Cruise ship accidents can happen while boarding, unboarding, walking around the shipping, or during an excursion to a land based city. Depending on where and when the accident occurs you claim may fall under a state law, Federal Maritime law, or a foreign port’s laws. A cruise ship lawyer will know what laws apply and how to recover maximum compensation. 

Schedule a Consultation with a Cruise Ship Accident Lawyer

If you are ready to speak with a cruise accident lawyer like a personal injury lawyer in Deer Park TX, today.

 


 

Thank you to the experts at John K. Zaid & Associates for their input into personal injury law.

Paying Your Medical Bills During a Personal Injury Claim

Personal Injury Attorney

You have been in negotiations for weeks, trying to hash out an agreement to cover your injuries from an accident. Your lawyer is doing their best, but the insurer is seemingly uncooperative. Meanwhile, your medical bills are piling up, and the specialist you need to see has just informed you that they require payment before they can continue your treatment. What are you going to do? You haven’t been able to work, and your savings are almost gone. Is there any way to pay for the treatment you so desperately need? Yes, you actually do have a few options to help you through your current financial situation.

Health Insurance

First, you can talk with your health insurance provider, explaining that your injuries were sustained in an accident, and you are currently in negotiations with the at-fault party’s insurer. Your insurance may cover the cost of your medical expenses. However, these payments will be earmarked, and once you receive your settlement or judgment, the insurer will expect repayment.

Medicare and Medicaid

Second, if you do not have insurance, you might qualify for Medicare or Medicaid. Both of these government-provided plans will help to cover the expenses of your medical treatment. However, they will also require that you use the full amount of your personal injury coverage from your auto insurer before giving assistance.

Personal Injury Coverage

Third, almost all auto insurance policies have personal injury protection built into the plan. While the coverage varies by provider, when you are involved in an accident, this portion of your auto policy should be one of the first places you look for assistance in paying your medical expenses. Unfortunately, personal injury coverage does not allow you to pick which bills are paid first, meaning that you do not have control over the funds.

Attorney Liens

Last, if all other options fail, you can turn to your attorney, especially if your case is pretty simple. Your lawyer can provide a letter to your doctors and other medical practices that essentially acts as a loan against your potential settlement or judgment. Therefore, you can receive treatment before receiving your settlement or reward. Then, upon receipt, your attorney and then the medical practices will be paid first.

While it can seem daunting and like there is no hope when fighting a personal injury claim, just know that there are ways to continue to get the medical treatment you need even when your cash flow is running low. To discuss payment options further, contact a personal injury lawyer, like a DC personal injury lawyer

 


 

Thanks to Rispoli & Borneo, P.C. for their insight into how to pay your medical bills during a personal injury claim.