{"id":2012,"date":"2018-05-03T00:00:00","date_gmt":"2018-05-03T00:00:00","guid":{"rendered":"https:\/\/www.awjlaw.com\/2018\/05\/03\/is-my-personal-injury-settlement-taxable\/"},"modified":"2024-10-22T16:34:15","modified_gmt":"2024-10-22T16:34:15","slug":"is-my-personal-injury-settlement-taxable","status":"publish","type":"page","link":"https:\/\/www.awjlaw.com\/faqs\/is-my-personal-injury-settlement-taxable\/","title":{"rendered":"Is My Personal Injury Settlement Taxable?"},"content":{"rendered":"

Having just wrapped up the 2018 tax season, taxes are fresh on everybody\u2019s minds. Since nobody wants to be charged with tax evasion, it\u2019s important to consider the tax consequences of all financial transaction, including personal injury<\/a> settlements, which can be worth thousands if not much more.<\/p>\n

If you file a personal injury claim, it will likely settle out of court because in reality, very few personal injury cases actually make it to trial. Once the responsible party offers you a fair settlement and you accept, the case is considered to be \u201csettled.\u201d From there, the other side cuts a check, your personal injury attorney\u2019s contingency fees are deducted, you get your money and the case is closed. Or is it? The question is, does Uncle Sam get his hands on a portion of your personal injury settlement?<\/p>\n

Personal Injury Settlements & Verdicts<\/h2>\n

Fortunately, the proceeds from personal injury awards are not generally taxable under Georgia State laws or federal law. It doesn\u2019t make a difference if you accepted an out-of-court settlement or if you won at trial. As a general rule, neither the State of Georgia, nor the IRS can tax the proceeds from personal injury claims.<\/p>\n

The following personal injury damages meant to compensate a victim for their losses are not taxable under state and federal law:<\/p>\n