After suffering an injury in an accident in Louisiana, there’s a good chance you’ll be owed financial compensation.
But you may be wondering when you’ll see that money, and if the amount you’re awarded will be taxable by the government. At Brandt & Sherman Personal Injury Lawyers, we can help you navigate every step of this process.
Every personal injury case is unique. There’s no definitive answer to how much money you’ll be awarded after an accident, and there is also no way of knowing exactly when you’ll receive your financial compensation. It could be a matter of weeks, months, or sometimes even years, depending on the complexity of your situation. Here are some possible scenarios.
After suffering injuries from an accident, you likely want to settle quickly, receive your money, and put the accident behind you. As experienced personal injury lawyers, however, we strongly advise you to exercise patience and caution. In order to get every penny you deserve, it’s important to ensure you are either completely recovered from your injuries, or—in the case of long-term injury or disability—that you’ve received a thorough diagnosis and treatment plan. This allows your attorney to demonstrate to the insurance company or court the full extent of what your medical expenses are or will be. After you’ve settled your case, you are required to sign a release to receive your money. Once this release has been signed, you can no longer make a claim for the accident, even if new injuries stemming from that accident develop later on. So take the time right from the beginning to see a doctor and gather all the proof of injury you’ll need.
If your lawyer estimates that your claim will take longer than a year to settle, he or she may advise you to file a lawsuit. This is because the statute of limitations in Louisiana is one year from the date of the accident, and a respected lawyer will want to make sure you aren’t left in the lurch regarding your eligibility to receive compensation.
Whether you settle in court or out, most of the money you’re awarded is tax-free. Typically the two most common types of payments are compensatory damages and property loss damages. Compensatory damages are intended to help you pay for medical bills if you’ve been injured in an accident. They’re non-taxable since they’re not considered income. Property loss damages are intended to help you pay to repair or replace property (like a vehicle) after an accident. They’re also tax-free in Louisiana, unless the amount awarded exceeds the estimated loss of value. In that case, the excess amount is considered taxable income at both the state and federal levels.
Although compensatory and property loss damages are not taxable, in some instances, your personal injury settlement will be taxable. These include:
If you’ve been injured in an accident, reach out to us at Brandt & Sherman Injury Lawyers if you’re in Louisiana. With over 60 years of combined experience, we’ll help you get the help you need and deserve. Contact us today, and see how we become your lawyer, your voice.
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