Iowa Truck Accident Settlement Taxes

Before you decide whether to proceed with an Iowa truck accident case, you understandably want to know how much of your potential recovery will end up in your bank account. Our experienced truck accident lawyers will be happy to review our contingency fee agreement and our Win or It’s Free Guarantee. Additionally, we encourage you to think about the taxes you could owe on your truck injury settlement.

Parts of Your Truck Crash Settlement Are Taxable

According to the current tax code, some of your truck accident settlement is taxable and some of it is not taxable. Specifically, any settlement that you recover for your physical injuries is not taxable. These damages may include:

  • Hospitalizations
  • Surgeries
  • Medical tests
  • Doctors’ visits
  • Medications
  • Rehabilitation therapies such as physical therapy and occupational therapy
  • Assistive medical devices
  • Psychological therapy

Your compensation for other losses, including but not limited to lost income, car repairs, pain, and suffering, is taxable. Any punitive damages that you recover are also taxable.

Don’t Let Taxes Prevent Your Fair Truck Crash Recovery

You may, or may not, have to pay some taxes on your truck crash settlement. However, it may still be in your best interest to pursue a truck accident recovery.

Before you decide whether or not to file a truck accident claim, we encourage you to reach out to our experienced truck accident lawyers for a free, no-obligation consultation. If you don’t have a case worth pursuing, then we will tell you that. However, if you do have a case worth pursuing, then we will also tell you that so that you can make an educated decision about how to protect your rights.

Your time to pursue an Iowa truck crash case is limited. Accordingly, we invite you to contact us today to schedule your free case evaluation in our Cedar Rapids, Des Moines, or Quad Cities office, at your home, in your hospital room, or remotely by phone or video.

 

Jason F. Abraham
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Managing Partner, Hupy and Abraham