Is My Vehicle Settlement Taxable?

Car accidents can be one of the most traumatic experiences of your life, and will often result in costly medical bills and expensive repairs. Insurance companies are usually of little to no help because their business model relies on people not needing their money — and they have lawyers on retainer to continue that trend.

Your recovery is what matters above all else. If your insurer is trying to keep the money they owe you, you might have to file a suit against them. This is a daunting task considering the sizeable amount of resources you’ll be up against, but a good car accident lawyer can make the process easier and drastically increase the chances of winning your case. Learn the steps to take after being injured in a car accident, and how a car accident lawyer can help you receive the settlement you deserve.

Verbal Caution

More often than not, car accidents are reduced to the vastly different stories of the people involved. Each person is just as credible, making any claims particularly difficult to prove. With a car accident lawyer, however, they can work to dismantle the credibility of the other person allowing your truth to persist.

Insurance companies are quick to use your own words against you. If you even hint that you might be liable for the accident, insurance companies will treat it as a confession and may use it against you. For more advice on what you should say, contact an Odessa car accident lawyer. A knowledgeable car accident attorney will be able to guide you through the legal process and increase your chances of winning your settlement.

How a Car Accident Lawyer Helps You

Insurance companies know that they have more available resources, and will try to fight paying out your due compensation by offering a lesser amount than what you’re owed. Fortunately, insurance companies don’t get to determine how much your case is worth if you don’t let them. A good car accident lawyer can help you find an honest estimation of your case’s worth rather than the low ball estimate from the insurance company who values their bottom line over your recovery.

In order to build a strong case, you need evidence. Car accident lawyers have experience gathering this evidence and know exactly what you need. Photos of the damage are useful, as well as CCTV footage. For your own injuries, you’ll need medical records. Neutral witnesses are some of the most effective ways your car accident lawyer can help you. They lack the inherent biases of you and your insurer.

Taxing Your Winnings

When determining the value of your case, you should consider the taxes you’d have to pay on your winnings. For most aspects of your case, you won’t be taxed at all. Medical expenses, rental cars, and repairs are all compensated tax-free in a successful case.

If your injury prevents you from working, you may be seeking wage compensation in addition to medical and car repair expenses. If wage compensation is awarded, you will have to pay taxes just like you would for your regular work wages. Punitive damages may also be imposed if your opponent was especially vile or cruel. Since punitive damages are meant to punish wrongdoing and not reimburse you for anything, they are also taxed.

Finding a Car Accident Lawyer in Odessa

Robert White has been winning car accident cases for victims in Odessa for years. Winning cases for over 30 years, Robert White Attorney at Law has a reputation for success — and getting the maximum compensation for victims. Contact us online or call (432) 279-1420 for your free consultation today!

Robert WhiteIs My Vehicle Settlement Taxable?

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