Think you know how personal injury cases are taxed?
It's time for a pop quiz. If a plaintiff suffers a broken bone in an accident, and a verdict awards the plaintiff itemized damages for pain and suffering, medical expenses, lost wages and emotional distress, and awards the plaintiff’s spouse damages for loss of services, which damages are tax free and which are taxable?
Make your guess.
Then, read the article How Personal Injury Cases are Taxed, by Kevin O'Brien, to find out the correct answer.
This article recently appeared in the New York Law Journal on April 27th and the New Jersey Law Journal on May 10th. Kevin is a structured settlement consultant at Creative Capital. He is also an attorney with an LL.M. in Taxation.
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Creative Capital Inc., established in 1980 and a founder of our industry, has been voted the Best Structured Settlement Provider both regionally (NY, NJ & CT) and nationally, recognizing our accomplishments and leadership over the course of our forty years in business. Our skilled team partners with clients to provide innovative solutions designed to achieve better settlements. Everything we do is driven by a strict code of Ethics along with the Expertise and Experience of an industry leader.