In general, compensation received through a mesothelioma agreement is not taxable. In accordance with section 104 of the IRS Tax Code, compensation awarded in direct connection with personal injury or illness is not taxable. Some parts of a mesothelioma settlement may be subject to taxation. According to the Internal Revenue Service (IRS), personal injury compensation is not taxable, while punitive damages and lost wages are taxable.
An experienced mesothelioma lawyer can help you understand if your financial agreement will be taxable. Generally, the IRS does not tax mesothelioma settlements until a set “cap” or percentage is established. On the other hand, certain aspects of a total agreement could be considered taxable. In general, compensation for a mesothelioma settlement is not taxable.
Under the IRS Tax Code, compensation awarded in connection with a diagnosis of mesothelioma is not taxable. For example, lawsuit payments for medical expenses are generally not taxable. An attorney experienced in filing asbestos lawsuits will work with you to identify your sources of exposure to asbestos. People who have been diagnosed with mesothelioma (or another disease caused by asbestos) tend to file personal injury lawsuits.
The IRS recognizes asbestos settlements (including trust fund claims and jury verdict amounts) as the same type of non-taxable income in most cases. There are several reasons why a patient or family member may choose to accept a mesothelioma lawsuit settlement. Compensation for patients with asbestos-related diseases may come from defendants who exposed the victim to asbestos or from one of the many national trust funds for patients with mesothelioma. Patients can also obtain compensation by filing claims through an asbestos trust fund or reaching a trial verdict.
The best way to properly complete your taxes as a beneficiary of a mesothelioma settlement is to work with a certified tax professional and a New York mesothelioma lawyer. Depending on several factors in your settlement, you may owe taxes on the profits of your asbestos lawsuit. Experienced mesothelioma lawyers can help patients and their families negotiate the highest possible amounts of mesothelioma settlement. A mesothelioma lawyer can help asbestos victims understand these factors and how they may affect their case.
When a mesothelioma lawsuit is resolved, victims of asbestos-related illnesses generally receive financial compensation for one of two reasons. As part of personal injury cases, a mesothelioma lawyer must prove that asbestos physically harmed the victim in order to receive tax-free personal injury compensation. Mesothelioma lawsuit settlements provide victims with guaranteed compensation that can be paid within a few months. Mesothelioma settlements and verdicts provide compensation to mesothelioma patients and their families.
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. Mesothelioma lawsuits are filed against asbestos manufacturers, but are not filed against the companies that the victim worked for in most cases.