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Nashville Personal Injury Lawyer > Blog > Car Accidents > Do I Have to Pay Taxes on My Car Settlement?

Do I Have to Pay Taxes on My Car Settlement?

Woman On The Phone After An Accident Stock Photo

Car accidents can be frightening and costly experiences, so you deserve the best coverage during your recovery. You need insurance companies to pay the money required for your medical bills, but they’re not going to want to. Insurance companies make money by people never cashing in on their insurance, and they have a team of expert lawyers to make sure that remains the case more often than not.

Their bottom line isn’t nearly as important as your recovery, however, so you might need to file a suit against them. A single person going up against a massive insurance company’s vast resources can be daunting, so it’s a good idea to hire an experienced car accident lawyer like Mitch Grissim. Mitch Grissim & Associates have been helping people in Nashville for years with their expertise, and you should consider having a professional lawyer in your corner too.

What Should You Say?

It’s very common in car accidents for the people involved to present two completely different and contradictory stories. For example, you might claim that the light was red while the other person insists it was green. Skilled car accident lawyers know how to get the jury on your side. They can lessen the credibility of your opponent by catching them in lies and rigorously examining their consistency.

Insurance companies are an entirely different beast to conquer, however. When dealing with them, it’s important to never admit liability even if the accident was your fault. They will be quick to use this confession against you and it can destroy cases. Mitch Grissim & Associates knows how to advise Nashville car accident victims with what to say and what to keep to themselves.

What a Car Accident Lawyer Can Do

In all car accident cases, insurance companies will act as the final authority. It is essential you remember that they are not. Insurers have a vested interest in giving you the lowest payout possible, so their evaluation isn’t exactly fair. A car accident lawyer can properly evaluate the value of your claim and ensure you get the money you’re owed.

Car accident lawyers also excel at finding evidence to support your case. Physical evidence like CCTV footage is undeniable in court, as are pictures. If you want to have some preemptive knowledge, contact a car accident lawyer to know exactly what parts of the vehicle you should photograph after an accident. They can also get neutral witnesses on the stand to testify on your behalf. That eliminates the bias of both your testimony and the insurers.

What About Taxes?

The litigation process can be a hassle, so it’s important to decide if you think it’s worth it. Most things can be taxed, but fortunately, money received from a car accident suit settlement is not taxed in most cases. It all depends on the details of your situation. Most settlements serve to reimburse your losses from medical expenses, repairs, and rental cars. These are not taxed.

However, compensation for lost wages may, in fact, be taxed. Since lost wages reimbursement is meant to be your income, it is subject to income taxes. In some cases, you may be awarded punitive damages if the person or insurer involved in your case was particularly outrageous. These awards are meant to punish defendants rather than reimburse you for losses, so they are taxed. If you’re having trouble wrapping your head around all this, the experts at Mitch Grissim & Associates can walk you through every scenario.

Hiring a Nashville Car Accident Lawyer

Going alone against a massive insurance company is always an extremely risky proposition, which is why hiring a car accident lawyer is a great decision to make. Mitch Grissim & Associates is prepared to work hard to get you the benefits you deserve after your accident. Insurers like to pretend they have the final authority, but Mitch Grissim & Associates can prove how the law can actually be on your side.

If you need a professional and qualified car accident lawyer in Nashville, look no further than Mitch Grissim & Associates. For a free consultation, contact a Nashville car accident lawyer online or call (615) 645-2659. Build your case with Mitch Grissim & Associates today!

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