Accidents are not things that people expect to happen. However, they are sometimes inevitable. When they happen, they can cause damage to property, physical injuries, and even mental and emotional disorientation. Many losses take place, including the loss of wages or income, life, or even property. When accidents happen due to the negligence of another party, you have the right to claim for compensation.
It is crucial to equip yourself with some knowledge of personal injury cases as you look to file for a claim. Here is what you need to know.
- Personal injury settlements are taxable
Personal injury is among the taxable lawsuits. If you receive money on compensation or claim, you will be taxed on that money, as it is considered as income. However, there are some exemptions to personal injury cases. For instance, if you receive a settlement award for bodily harm, then you will not be taxed. The injuries must be physical for your settlement to be tax-free. Settlement for emotional distress and unobservable harm has to be taxed. If such home attracted out of pocket expenses such as a fee for therapy, then it is tax-free. It is essential to consult a lawyer or tax professional in order to get insights on what should be taxed and what shouldn’t.
- It is always best not to be quick in accepting offers from the adjuster
Remember that insurance companies are in business and will do anything to protect their bottom line. They often undervalue claims, and the result is a settlement that cannot help you face the financial adversities caused by the accident. That is why you need to work with a personal injury attorney from Craig Swapp& Associates.
A personal injury lawyer is able to tell the size of settlement that your case deserves. More so, he or she will be on the frontline negotiating for a fair settlement. Never take the first offer of an adjuster: they always start with the lowest.
- You can settle the case out of court
Not all personal injury cases go to trial. Some are settled outside court, and it is usually the preference of defendants to have things settled outside. This is mainly because trials can be expensive and can hurt the reputation of the defendant, for instance, if it is a company or a professional.
With the help of an experienced lawyer, you can get settlement through mediation. If mediation with the insurance adjuster is not fruitful, then you can proceed and go for trial.
- Evidence is critical
All personal injury cases require evidence. Therefore, you should be proactive in collecting even the tiniest piece of evidence when a personal injury accident takes place. It could be pictures of the scene, witness statements, and any other thing that can help in building a strong case.
Personal injury cases differ and take different durations. To have a smooth sail, consider involving a professional. That is, a personal injury attorney. They have knowledge and experience in various personal injury cases and will help you get the best settlement.