[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.zimmetzimmet.com\/blog\/is-your-florida-personal-injury-award-taxable\/#BlogPosting","mainEntityOfPage":"https:\/\/www.zimmetzimmet.com\/blog\/is-your-florida-personal-injury-award-taxable\/","headline":"Is Your Florida Personal Injury Award Taxable?","name":"Is Your Florida Personal Injury Award Taxable?","description":"Perhaps you have spent the last few months\u2014or even years\u2014embroiled in a\u00a0personal injury claim. You are relieved to hear that your claim has finally settled for an equitable amount, and you now wonder whether your award is taxable. The answer to that question depends on a number of factors associated with your case. You may...","datePublished":"2019-08-02","dateModified":"2025-01-05","author":{"@type":"Person","@id":"https:\/\/www.zimmetzimmet.com\/blog\/author\/zimmet\/#Person","name":"Zimmet & Zimmet","url":"https:\/\/www.zimmetzimmet.com\/blog\/author\/zimmet\/","identifier":8,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/3010bdac5ced5112b2840e84f5233c0b7d763a33cb3d5b6de07a5a4b44884d69?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/3010bdac5ced5112b2840e84f5233c0b7d763a33cb3d5b6de07a5a4b44884d69?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Zimmet & Zimmet","logo":{"@type":"ImageObject","@id":"https:\/\/www.zimmetzimmet.com\/wp-content\/uploads\/2024\/11\/footer-logo-blue.svg","url":"https:\/\/www.zimmetzimmet.com\/wp-content\/uploads\/2024\/11\/footer-logo-blue.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.zimmetzimmet.com\/wp-content\/uploads\/2024\/11\/is-your-florida-personal-injury-award-taxable.jpg","url":"https:\/\/www.zimmetzimmet.com\/wp-content\/uploads\/2024\/11\/is-your-florida-personal-injury-award-taxable.jpg","height":600,"width":900},"url":"https:\/\/www.zimmetzimmet.com\/blog\/is-your-florida-personal-injury-award-taxable\/","about":["Personal Injury"],"wordCount":634,"keywords":["Personal Injury Attorney","Personal Injury cases","Personal Injury Lawyer","Personal Injury taxable"],"articleBody":"Perhaps you have spent the last few months\u2014or even years\u2014embroiled in a\u00a0personal injury claim. You are relieved to hear that your claim has finally settled for an equitable amount, and you now wonder whether your award is taxable. The answer to that question depends on a number of factors associated with your case.You may be receiving one or more of the following: compensation for your medical expenses, compensation for any lost wages due to your physical injury and inability to return to work, compensation for emotional distress due to your physical injuries or illness, and compensation for physical injury or illness.The money you receive to compensate you for your medical expenses will be in a different category than the money you receive to compensate you for your lost wages. In general, your tax liabilities will be as follows:Compensation you receive as a result of your physical injuries or illness stemming from the accident\u00a0will not be taxed. This includes all of your medical expenses, whether for ER visits, personal physician visits, any type of rehabilitation therapy, nursing care, and prescription medication expenses.Lost wages compensation\u00a0is\u00a0taxable\u2014just like the wages you earn are taxed, any compensation received as a replacement for what you would have earned if you had been able to work will be taxable.Compensation received for pain and suffering damages is\u00a0usually not taxable, as they go hand in hand with compensation received for physical injuries and medical expenses associated with those injuries.Damages you receive for emotional anguish may be taxable. Emotional anguish is different than physical suffering, therefore, you may be required to pay taxes on the amount set aside for emotional anguish.Punitive damages are awarded when the person responsible for your accident was willfully or recklessly negligent. If you receive punitive damages, that amount\u00a0is taxable.Remember, it will be up to you to show your personal injury payments are not taxable. The IRS is allowed to look at the pleadings in your case, discovery documents and anything else which could be helpful in determining the real purpose of your award. The language of your judgment is crucial, and it must clearly state what funds are meant to compensate you for which issue. They must be broken down by category.Your attorney may be able to maximize your pain and suffering damages, minimizing punitive damages in order to reduce your overall tax liability. If you will owe taxes on any part of your award, you can send an estimated amount to the IRS immediately, or set funds aside in a special account until tax time rolls around.ImportantThe information in this article is general and educational. It is not legal or tax advice. You should always consult a competent tax advisor concerning your unique situation prior to taking any action which may be affected by tax laws.Have You Been Injured in an Accident?\u00a0If you\u2019ve been injured in an accident in Daytona Beach, Florida and you believe that someone else\u2019s negligence was to blame, it is important to speak to an experienced personal injury lawyer as soon as you are able. At Zimmet & Zimmet, our experienced Daytona Beach personal injury lawyers\u00a0have extensive experience representing injured accident victims.\u00a0Contact us today\u00a0for a free initial consultation and review of your case. Call (386) 255-6400\u00a0or fill out our confidential contact form and we can help you through this difficult time.Additional ReadingWhat to Do If You Are Injured by a Drunk DriverUnderstanding Negligence in a Personal Injury CaseHave you been injured in an accident or fall? Do You have question and want to know your legal options. Call 386-255-6400 for a free consultation and remember there is NO FEE unless WE Win."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.zimmetzimmet.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Is Your Florida Personal Injury Award Taxable?","item":"https:\/\/www.zimmetzimmet.com\/blog\/is-your-florida-personal-injury-award-taxable\/#breadcrumbitem"}]}]