Taxation on Settlements and Awards
A person suffering from the negative side effects of Accutane may win compensation in a civil lawsuit against the drug manufacturer. In some cases, a person may win a court award from the case. However, many of these cases end in a settlement agreed upon by the manufacturer and the injured individual. As these sums are primarily intended to recover money lost because of an injury, taxes can become a serious concern.
If you have developed an adverse health condition associated with Accutane use, it is advisable to consult with a knowledgeable and experienced attorney about your legal rights. Contact the Accutane side effect lawyers of Williams Kherkher by calling 800-761-3187 today.
What Portion of a Settlement is Non-Taxable?
A compensation award or settlement sum generally will not be taxed by the federal government as income tax. These sums often cover medical bills, lost wages, and other expenses that have already caused the injured individual financial losses. To protect the financial stability of those who need these compensation funds, the government will not tax compensation for the following:
- Injury
- Medical bills
- Lost wages
- Loss of consortium
- Emotional damages
Certain cases will allow some amounts to be taxed as income. However, these are generally limited to funds gained through interest and funds gained as punitive damages.
Contact Us
Financial compensation can provide the resources necessary for people who have suffered immensely from Accutane’s negative side effects to begin to regain some sense of normalcy. For a free consultation regarding your legal rights, contact the Accutane side effect attorneys of Williams Kherkher today at 800-761-3187.
