The damages awarded to individuals harmed as a result of medical malpractice are very helpful when it comes to affording medical expenses and dealing with lost wages. There are other damages such as non-economic and punitive.
While these awards are great, not many people are sure of whether or not they are taxable and what this means. Does it become part of income? Can you lose some of the money awarded? These are important things to know.
So, are medical malpractice awards taxable? It depends.
There are certain circumstances that must be considered and they determine whether or not you have to pay taxes on your award. Here are the things you should know about which damages may be considered taxable and which ones are tax-free.
If economic damages include replacement income, that must be included in the taxable income, as well as interest awarded as part of the lawsuit.
Regardless of whether or not the award is taxable, you deserve the right to seek compensation for the damages caused by a negligent medical professional. You should be able to hold the responsible party accountable financially.
Our Philadelphia medical malpractice attorneys at The Beasley Firm are committed to protecting your rights and we know how difficult this situation is. You deserve to seek compensation and if successful, you should know what is taxable and what is not.
We make it a point to explain your rights and options every step of the way so you have the peace of mind you deserve. Trust that we’re here for you.
Call us today to discuss your potential case.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.