As a general rule, personal injury settlements and verdicts are not taxable. Neither are wrongful death settlements or verdicts. However, if your settlement includes payment for lost wages, that portion of the settlement will be taxable, as it includes amounts that would have been reported as income to the IRS.
It is important that you consult with an experienced attorney regarding any wrongful death settlement to insure that you are getting the most compensation possible and that any compensation you do receive is not taxable. Our firm has experience negotiating wrongful death settlements that are tax free. Please give us a call.
