Taxes on My Personal Injury Settlement: How Much Will I Owe?

If you’ve settled a personal injury matter this past year, or if you’re considering your settlement options after being involved in a car accident, boat accident, slip and fall, or other personal injury matter, you might be wondering: Is my settlement taxable income? Generally, settlements that are awarded for the sole purpose of compensating an individual for his or her personal injuries are not subject to state or federal tax. Missouri law states that compensation received for personal injuries is exempt from income tax.

However, there are several exceptions to this general rule. In certain situations, your settlement, or a portion thereof, might be taxable. The facts and specific circumstances surrounding each settlement must be carefully reviewed in order to determine whether the entirety of a personal injury settlement is exempt from taxes.

It’s important to consult a knowledgeable attorney with experience in personal injury law to ensure you understand the tax implications of your personal injury settlement.

For More Missouri Personal Injury Information:

Personal Injury Claims Explained: What You Need to Know

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Types of Compensation in Broad Terms