Personal injury cases aren’t as simple as one may think. It’s not a black and white situation where you can present what happened and demand compensation outright. If it’s your first time suffering from a personal injury, it’s natural not to know everything about it.
The following may shed some light on things you need to know about individual injury cases:
- It’s Better Handled With A Legal Representation
Personal injury cases take an organized system for an individual to secure evidence and people who are willing to stand as witnesses. There’s also a due date on the filing of requirements. Simultaneously, negotiating for a settlement is not easy because the insurance company may not quickly agree to the amount you want.
A personal injury case can be tricky unless you have an attorney who can guide you through the settlement, according to Raphaelson Levine. Your attorney knows what type of compensation you should pursue and if that compensation is taxable.
- Emotional Injury Is Taxable
Those pushing for compensation for physical injuries don’t have to pay taxes to the IRS or the state. Awarded compensatory damages, such as medical expenses, lost wages, and attorney fees, among others, are for making the injured person whole.
If negligence at the workplace or an establishment did not harm you or make you sick, you may still get compensation, but with tax deductions. You must first prove that you were physically injured or became ill if you want to defer paying taxes out of the amount of money you got.
- Personal Injury Settlements Are Non-Taxable With One Exception
An injury or sickness caused by the workplace might win the case and get you a non-taxable compensation, unless you get hurt through a contract breach. For example, if you got injured by not following specific protocols, you may get compensated, but taxes will still discourage you from repeating the same carelessness.
At the same time, individuals arrested for DUI driving will also have to pay punitive damages to others involved in the accident you caused. The one at fault knew that drunk driving is dangerous, so responsible parties must pay punitive damages apart from compensatory damages.
- Medical Providers Get Paid Out Of Your Settlement
Winning a settlement means you may also need to pay health workers if the state mandates it. In Arizona, hospitals must be reimbursed with the difference between the base price and the contract amount with the insurance company. It can take a chunk away from your settlement. At the same time, the insurance company may be able to seek reimbursement as well. But, that’s only a case if they can comply and prove that they followed and complied with the federal statute.
- Avoid Speculations And Misstatements
You can lose a personal injury case by making speculations and lying. Let your attorney advise you on what to say and what not to say because you may utter something that can be wrongly interpreted. Your attorney must also know the entire truth to be able to give you the best counsel available. Remember that if you were asked a question and unsure, tell them as it is and don’t create a story.
At the same time, it’s also essential to ask the right questions to your attorney before deciding to file a case. You must first be aware of the risks and what you can gain or lose should you pursue the matter.
A personal injury case can be complicated, and unless you know how the law works around it, it’s best to seek professional advice. Cases such as this one can go for months and even years if both parties cannot settle. At worse, a personal injury case that keeps dragging on will cost you even more. Reach out to an attorney who can help you get the best deal you want.