Switch to ADA Accessible Theme
Clearwater Personal Injury Attorney
For A Free Consultation 877-767-1032

Car Crash Settlements And Tax Responsibilities


When seeking a settlement after a car accident in Clearwater, Hudson, or Tampa, people are often doing so, in part, to shield their financial future from the impact of unpaid medical bills and fees. If this is true for you, it is natural that you would question what a large settlement would do to your tax obligations as well.

A skilled attorney can guide you through the car accident claims process from start to finish. They will know how much your claim is worth when you begin the process, and they can talk to you about how funds will be allocated once a case is closed. If it is in your best interests to talk to another professional, such as a tax accountant, they can introduce you to those experts, too.

Bodily Injury Settlements Aren’t Taxed

When seeking monetary damages for medical fees connected to bodily injuries, these are usually tax-free funds. But of course, it is important to ask questions when you have them and be sure you are understanding settlements before you agree to them as each case is unique. That said, most compensation awards due to the following will not be taxed.

  • Damage recovery due to physical injury or illness.
  • Monetary settlements for medical tests, expenses, and fees.
  • Emotional distress awards connected to illness or injury.

In the state of Florida, it is possible that damage recovery as a result of lost income, interest accrual, or punitive damages could be taxed. Because a complicated settlement could include both bodily injury recovery and funds for lost wages, you need to understand what position of the settlement could be taxed so you can prepare to make those payments as needed.

Talk Through Your Financial Worries with a Skilled Attorney

Stress is common after an accident. After all, you could be receiving expensive medical bills while you are off work healing, losing income. On top of those worries, you may have to buy a new car or be facing extensive repairs on the automobile that was involved in the collision. With so many concerns, it is normal to want clear financial facts as you navigate the recovery process.

A Florida personal injury lawyer has the experience you need. And because they are paid on a contingency fee basis, you do not need to outlay any of your own funds now. Your attorney will be paid out of the settlement received, and they will push back on low offers to be sure the amount covers your expenses and allows you to move forward financially, including being able to afford tax obligations should they need to be paid.

Are you worried about how your Florida car accident settlement will affect your taxes? Professionals can guide you through the process. Complicated and straightforward cases benefit from legal guidance, talk to the skilled attorneys at Roman & Roman to learn about what options you have available to you. Our team of personal injury lawyers have over 100 years of combined experience, and we know how to handle personal injury settlements and tax obligations. Schedule your no-obligation, free consultation today.

Although the law firm of Roman & Roman has offices in Clearwater, Hudson and Tampa, we handle cases and claims throughout  Florida. We also meet personally with our clients if at all possible, rather than impersonally over the phone or on the Internet.

Facebook Twitter LinkedIn
Clearwater Office

Clearwater Office

fax: 727-736-3234
2274 FL-580
Clearwater, FL 33763
Hudson Office

Hudson Office

Hernando: 352-796-2151
fax: 727-736-3234
12000 U.S. Hwy 19
Hudson, FL 34667
Tampa Office

Tampa Office

(by appointment only)
fax: 727-736-3234
9301 W. Hillsborough Ave.
Tampa, FL 33615
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience.

This web site is designed for general information only. The information presented at this site should not
be construed to be formal legal advice nor the formation of a lawyer/client relationship.

© 2015 - 2024 Roman & Roman, P.A. All rights reserved.

Contact Form Tab