Q
If i was in a car accident that resulted in bodily injury in the state of texas, and was compensated with a settlement out of court, is that amount taxable? if so, what percent does the govt tax?
A
Generally the proceeds of a personal injury action are NOT taxable. Of course, every situation is different so it is always a good idea to check with your own attorney or tax preparer to make sure there is not some reason why your particular settlement is taxable.
I hope that helps answer your question.
Jim
_________________________________
Jim Reed
NY and PA Injury Lawyer
jreed@zifflaw.com
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