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Home  >  Articles  >  Is Compensation Taxed?

Is Compensation Taxed?

A major concern many people face when they are considering pursuing legal action against someone responsible for their injuries is whether that compensation is taxable is or not. However, the government is careful to protect injured claimants who have proven their case against a responsible defendant. That’s why most compensation is considered non-taxable.

If you’re searching for legal assistance with your brain injury claim, we may be able to help you. For more information regarding your legal options, contact the New Jersey brain injury attorneys of Levinson Axelrod, P.A., today at 1-800-346-5529.

What Compensation Is Taxed?

Compensation received for most injuries isn’t taxed by the government, meaning that the amount the claimant receives is the amount they will keep. This money can then be spent on paying back the high costs of medical treatments and debts that may have built up due to the injury. However, there are certain instances when compensation is taxed. These include the following:

  • Non-injury damages, including defamation or slander compensation
  • Accrued interest from an injury compensation
  • Punitive compensation, as ordered by the court

These amounts are usually fairly rare in an injury case, although interest may add up if a brain injury was sustained a significant time ago.

Contact Us

If your injuries were caused by another person’s mistakes, you may be looking for help with your next steps. Our dedicated and reliable advisors may be able to answer the questions and concerns you may have about your options. To discuss your claim in more detail, contact the New Jersey brain injury lawyers of Levinson Axelrod, P.A., by calling 1-800-346-5529 today.