Personal Injury Tax Ramifications




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Personal Injury Tax Ramifications

In Personal Injury, Wrongful Death and Punitive Damages Recoveries.

Generally, monies received in settlement or through collection of a verdict to recoup medical bills, property damage and pain and suffering resulting from physical injury are not taxable. Monies received to recoup lost wages and income are taxable. Monies received as punitive damages are taxable. Monies received on account of employment discrimination or dignitary torts such as libel, slander, and malicious prosecution are taxable.

Obviously, a gray area is presented when one receives money from a general verdict or from a lump sum settlement when no allocation is made with regard to what is being reimbursed. When considering a personal injury case, to be safe, one should allocate for tax purposes that part of the recovery that was based upon income/wage loss.

Please keep in mind we are not tax attorneys and only mention this general advice as it relates to our consumer practice. If you are in doubt as to whether a personal injury settlement or verdict collection should be included as income, we suggest you consult with the person who prepares your taxes for an interpretation of Internal Revenue Code Sec. 104(a)(2).

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	LAW OFFICES OF GARY GREEN	Copyright © 2008 Law Offices of Gary Green Last modified: March 27, 2008
	1001 La Harpe Boulevard
	Little Rock, Arkansas 72201	For information on other offices click here.
	Toll-free: 888-442-7947
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DISCLAIMERS TEXAS Gary Green is the lawyer who is responsible for the content of this ad. Client will be obligated to pay all court costs and out of pocket expenses upon the collection of a settlement or verdict. Attorney fees are computed from the gross recovery. Court costs, litigation expenses and medical bills are paid from client's share of the recovery. However, if client does not recover, there is NO charge for attorney fees and NO charge for costs and expenses, except for client's medical bills. Percentage fees in personal injury cases, other than medical negligence and product liablity, are based upon a sliding scale of 1/3 of the gross recovery prior to filing suit, 40% thereafter and 45% in the event a notice of appeal is filed. Fees in medical negligence and product liability cases are, based on the same sliding scale, 40/45/50. Fees in Federal Tort Claims cases are limited to 20% of the gross recovery prior to filing suit and 25% thereafter. Fees in qui tam cases are set by statute. Attorney, Gary Green, was licensed to practice law in Texas in 1988. Attorney Sarah K. Williams was licensed to practice law in Texas in 2004 and Mississippi in 2005. Attorney Connie McNamire was licensed to practice law in Texas in 1995. ARKANSAS Gary Green is the attorney responsible for the content of this ad. The geographical location of the Little Rock, Arkansas office is 1001 La Harpe Blvd., Little Rock, Arkansas 72201. MISSOURI Gary Green is the attorney responsible for the content of this ad. Client may be responsible for costs and expenses. We are required to notify you of the possibility that an internet e-mail message could be randomly intercepted and disclosed by an otherwise disinterested person, as well as of the risk that the message could be intercepted by someone specifically interested in the matter which is the subject of this communication. Neither the Supreme Court of Missouri nor the Missouri Bar reviews or approves certifying organizations or specialist designations. The choice of a lawyer is an important decision and should not be based solely upon advertisements. I must advise you that Internet communications are subject to interception. Therefore, your expectation of privacy may be deemed waived; and these communications may not be protected by the attorney-client privilege. TENNESSEE Attorney fee percentages are computed before deduction of costs. Kevin Graham will be responsible for the performance of all legal services advertised herein. Kevin Graham is licensed to practice law in Tennessee. Gary Green is licensed to practice law in Arkansas, Texas, Missouri and Oklahoma. Not certified as a civil trial specialist or medical malpractice specialist by the Tennessee Commission on Continuing Legal Education and Specialization. Not certified by the Tennessee Commission on Continuing Legal Education and Specialization as a specialist in any area mentioned herein. OKLAHOMA This is an advertisement. Gary Green is the lawyer responsible for the content of the advertisement. 1001 LaHarpe Blvd., Little Rock, Arkansas 72201, is licensed to practice law in Oklahoma, Arkansas, Texas and Missouri. Client will be obligated to pay all court costs and out of pocket expenses upon the collection of a settlement or verdict. Attorney fees are computed from the gross recovery. Court costs, litigation expenses and medical bills are paid from client's share of the recovery. However, if client does not recover, there is NO charge for attorney fees and NO charge for costs and expenses, except for client's medical bills. Percentage fees in personal injury cases, other than medical negligence and product liablity, are based upon a sliding scale of 1/3 of the gross recovery prior to filing suit, 40% thereafter and 45% in the event a notice of appeal is filed. Fees in medical negligence and product liability cases are, based on the same sliding scale, 40/45/50. Fees in Federal Tort Claims cases are limited to 20% of the gross recovery prior to filing suit and 25% thereafter. Fees in qui tam cases are set by statute. ATTORNEY LICENSURE DISCLAIMERS The following attorneys are licensed in Arkansas: Gary Green, Mike LeBoeuf, Randy Hall, Howard Schwander, Carter Stein, Emily White, Ben Kent, Pamela Epperson Panasiuk, Sarah Baber and Keith Coker. The following attorneys are licensed in Missouri: Gary Green, Mattie A. Taylor and Chol Pak. The following attorneys are licensed in Texas: Gary Green, licensed in 1988, Sarah Williams, licensed in 2004 and Connie McNamie, licensed in 1995. The following attorneys are licensed in Tennessee: Kevin Graham and Derek Fairchilds. The following attorney is licensed in Oklahoma: Gary Green The following attorney is licensed in Mississippi: Sarah Williams The following attorney is licensed in New Jersey: Pamela Epperson Panasiuk