In general, compensation received through a mesothelioma settlement is not subject to taxation. According to Section 104 of the Internal Revenue Service (IRS) Tax Code, any compensation awarded in direct connection with personal injury or illness is exempt from taxation. However, certain parts of a mesothelioma settlement may be taxable. The IRS states that punitive damages and lost wages are subject to taxation.
Understanding the tax implications of a mesothelioma settlement can be complex, and whether the amount of money you receive after a personal injury lawsuit is taxable will largely depend on the type of compensation you are awarded. Generally, the IRS does not tax mesothelioma settlements until a set “cap” or percentage is established. On the other hand, some parts of an agreement total could be considered taxable.In general, the compensation of a mesothelioma settlement is not taxable. Under the IRS Tax Code, any compensation awarded in connection with a diagnosis of mesothelioma is not subject to taxation.
For example, lawsuit payments for medical expenses are generally not taxable. For more information on what you can expect when trying to get mesothelioma compensation, contact an asbestos lawyer. Compensation for patients with asbestos-related illnesses may come from defendants who exposed the victim to asbestos or from one of the many national trust funds for patients with mesothelioma. Mesothelioma lawyers can determine which options will be best for you and recommend other forms of compensation, such as asbestos trust fund claims or VA benefits, in addition to filing an asbestos lawsuit.The IRS recognizes asbestos settlements (including trust fund claims and jury verdict amounts) as the same type of non-taxable income in most cases.
If understanding all the fiscal ramifications of a mesothelioma settlement overwhelms you, you're not alone, and that's why it's vital to work with a top-tier law firm with experience handling asbestos and mesothelioma cases. Supreme Court decision, those who file a lawsuit (plaintiffs) will pay taxes as if they had received 100% of the money from a lawsuit before attorneys' fees are deducted if the money they recover is considered taxable income. Mesothelioma lawsuit settlements provide victims with guaranteed compensation that can be paid within a few months.An attorney experienced in filing asbestos lawsuits will work with you to identify your sources of exposure to asbestos. Patients can also obtain compensation by filing claims through an asbestos trust fund or reaching a trial verdict.
When a mesothelioma lawsuit is settled, victims of asbestos-related illnesses generally receive financial compensation for one of two reasons. In addition to varying local and state tax variables, there are other factors that can affect mesothelioma lawsuit settlement taxes.Consequently, personal injury and wrongful death claims are common forms of legal compensation for those affected by mesothelioma. The financial compensation earned in a mesothelioma lawsuit can vary based on several factors, including whether some of the money is considered taxable income. An experienced mesothelioma attorney can help you understand if your financial agreement will be taxable and negotiate the highest possible amounts of mesothelioma settlement.
They can also help patients and their families understand what details may affect asbestos settlement amounts. Get a free legal consultation today to see if you're eligible for financial compensation through a mesothelioma lawsuit.