With new tax laws coming into place, there has been a lot of speculation over how and when settlements will be taxed. It is important to know just how taxation of lawsuits is handled, so that you do not settle your injury case and end up with a large tax bill at the end.
What is and in Not Taxable
First, as a general rule, settlements or verdicts that compensate you for losses as a result of an injury are not considered taxable. Of course, there are exceptions to everything, and this is no different.