Will I Owe Taxes on My Car Accident Settlement in Colorado Springs?
When you’ve been involved in a serious car accident, it can be a good idea to file a personal injury lawsuit, particularly if you’ve suffered major injuries that prevent you from working. While it’s possible your case will go to court, you may also receive a pretrial settlement. Vehicle accident settlements are meant to compensate you for your accident, and depending on the details of your settlement, you may be required to pay taxes.
If you’ve received a vehicle accident settlement, it’s a good idea to find out if you will need to pay taxes. Find out if your vehicle accident settlement will be subject to taxation, and learn why it’s a good idea to work with a car accident lawyer.
Damages for Injuries
When you receive a settlement after a serious car accident, there are several types of damages that you may receive. Commonly, you will be awarded either general or compensatory damages, which are intended to make up for any money you spent on medical expenses as a result of your accident. Usually, these damages are not subject to taxes. This is because damages awarded for medical expenses are a form of reimbursement for money that you were forced to spend due to the actions of another.
It is also possible you will receive compensation for damages inflicted on your vehicle, and like medical damages, these damages will generally not be taxed.
Lost Income
Unfortunately, many car accidents result in injuries severe enough to prevent you from working. If you can prove that you will be unable to work for an extended period of time, then your settlement may include damages for lost income. Lost income damages, unlike general damages, can be subject to taxation. This is because these damages replace work income that would normally be taxed.
It’s common for vehicle accident settlements to include multiple types of damages. You will need to examine the terms of your settlement and pay taxes on whatever portion of your damages has been earmarked for lost income. Your car accident lawyer should be able to determine if you need to pay taxes and, if so, how much you should pay.
Other Damages
Depending on the severity of your case, it’s possible that you will also be awarded punitive damages. Although these damages are extremely rare, they may be included if the actions of the at-fault driver were very dangerous or negligent. As with the loss of income damages, punitive damages are taxable. Mostly, this is because punitive damages count as income you would not have earned if there was no car accident.
Contact a Car Accident Lawyer
Filing a lawsuit can be a good decision if you’ve been seriously injured in a car accident. If you want to be certain that your claim is being handled the right way, then you need to hire a car accident lawyer from Heuser & Heuser, LLP.
At Heuser & Heuser, we understand how difficult car accident cases can be and why it’s so important to have compassionate legal representation. We can help you plan your case, potentially negotiate a settlement, and advise you if you need to pay taxes on your damages. Contact us today for information about our services.
No Fee Unless You Win
Questions Or Schedule A Free Appointment? Click To Call (719) 520-9909
No Fee Unless You Win
Questions or Schedule A free Appointment? Click to Call (719) 520-9909
Frequently Asked Questions
How Do I Know What My Injury Case Is Worth in Colorado Springs?
There are a variety of things we look at when evaluating your case and determining its value.
We look at how the accident occurred: How did someone else’s carelessness lead to the accident? Did your actions also contribute to the crash?
We also look at what sort of injuries you sustained: Do you have a permanent injury that will last the rest of your life? Are you going to have future medical bills?
We look at lost wages: Did you lose your job? If you have permanent work restrictions due to the accident, you may not be able to find a job very easily in the future.
These are only some of the factors that we look at in evaluating a claim. You may have additional losses to account for in a claim, and sometimes additional evidence or expert witnesses will be needed to support an evaluation.
At Heuser & Heuser, LLP, we can identify those factors during a free case evaluation, during which you tell us your story so we can take the first step in building a legal strategy at no financial risk to you.
Every case is unique and different. That’s why our lawyers at Heuser & Heuser, LLP give each case personal attention during case reviews and evaluations for potential claims.
Do You Usually Win Good Settlements for Your Clients in Southern Colorado Personal Injury Claims?
At Heuser & Heuser, LLP, we have a strong track record of positive case resolutions for our clients. We have settled hundreds, if not thousands, of cases where we’ve had large settlements.
We’ve had substantial verdicts. We go to the mat for our clients if necessary. We’ll appeal cases.
Each case and client has different needs and options, and we’ll do whatever it takes to take care of our clients. We can identify the right path for your case during a free case evaluation.
Why is it Important to Hire a Lawyer for a Personal Injury Claim in Colorado Springs?
Insurance companies are in business for a reason: to make money.
Anytime the insurance company is paying money on a claim, it means less money to their bottom line. They have literally hundreds of adjusters and hundreds of lawyers who are on their side trying to figure out how to prevent money from leaving their checkbooks.
Quite frankly, you do need a lawyer to help you through this because your lawyer will stand up for your interests and seek proper compensation on your behalf.
See What Our Clients Say
No Fee Unless You Win
Questions Or Schedule A Free Appointment? Click To Call (719) 520-9909
No Fee Unless You Win
Questions or Schedule A free Appointment? Click to Call (719) 520-9909
Our Attorneys
Gordon J. Heuser, Esq.
As a Colorado Springs native, Gordon has been practicing in Southern Colorado for 40+ years.…
Brennan D. Heuser, Esq.
Brennan Dale Heuser is a Colorado Springs native who enlisted in the U.S. Army in…
Shannon R. Colt, Esq.
Shannon Colt isn’t your typical attorney. Originally from Idaho, she moved to Colorado Springs as…
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Injured? Contact Heuser & Heuser, LLP. We Are Committed to Providing Southern Colorado Tailored Legal Guidance and Peace of Mind On the Road To Recovery!
- Tell us your story during a free consultation
- We will tell you if you have a case and assess potential value
- Our personal injury attorneys can handle the insurance companies
- Our experienced Colorado trial attorneys will seek a settlement for the money you need while you recover, and we will represent you in court if it is necessary to pursue fair and appropriate compensation for your injuries and expenses
- You only pay us if we win money for you
- You focus on your physical recovery and your life
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Want To Learn More About Your Colorado Car Accident Case? Download Our E-Book for Free!
We wanted to find a way to make your car wreck case even easier for you. That is why we wrote this guide that will provide you with the information you need to know about your car accident case.
As car accident law professionals, we have seen too many individuals lose out on their potential maximum compensation. Don’t miss out on the settlement you need!
In this book, you will learn how to:
- Avoid the key mistakes that can derail your claim
- Know what you should and shouldn’t say if an insurance adjuster contacts you
- Understand the dos and don’ts of social media after a crash
- Position yourself to pursue full and fair compensation for your injuries
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Questions Or Schedule A Free Appointment? Click To Call (719) 520-9909
No Fee Unless You Win
Questions or Schedule A free Appointment? Click to Call (719) 520-9909
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