ARE PERSONAL INJURY SETTLEMENTS TAXABLE IN ILLINOIS?
When are personal injury settlements taxed in Illinois? A lot of this is up for debate, but some economic damage recovery may be taxable. For example, if a person recovers money for punitive damages, there are some accountants that will tell you that those recoveries would be taxable. Punitive damages are intended to punish the defendant for willful, wanton, or reckless actions, such as driving under the influence or selling a dangerous product. Other types of settlements could be taxable. Talk to a CPA if you have questions about your personal injury settlement. Injured due to someone else’s negligence? Contact a Chicago personal injury lawyer today! If you were injured as a result of someone
When you get a settlement check, you may be wondering if you will have to pay taxes on the amount. Well, let’s be clear, we are not accountants, and we do not give tax advice. But this is what accountants have told us about personal injury settlements. As a general rule, money received for non-economic injuries are typically not subject to taxation. Why is that? According to accountants, these types of recoveries are not considered gross income. The best way I’ve heard it described is this. Say you lost your arm in a crash. The money paid by the defendant is money to replace your lost arm, so you haven’t gained anything. Obviously, if you have specific questions about taxes in regards to your settlement, talk to a certified public account (CPA) in your area. They can guide you through this process. Let’s break this down. What is tax-free? According to accountants, the following is tax-free: • Compensation for physical injury or physical sickness • Compensation for pain and suffering and/or disfigurement (aka non-economic damages) • Compensation for emotional distress due to physical injury or sickness • Compensation for medical expenses
else’s negligence, there is hope. Our personal injury attorneys understand what you’re going through, and we’re here to guide you and your family through this difficult time. Contact us today for a free consultation at (312) 578-9501. We look forward to speaking with you!
5 WINTER DRIVING TIPS To Keep You Safe This Year
Keep your tank full. The American Automobile Association (AAA) recommends that drivers keep at least half a tank of fuel in their vehicles at all times during the winter. That way, you’re prepared if an emergency happens. Avoid using cruise control. When driving on any slippery surface like ice or snow, you should avoid using cruise control. Accelerate and deaccelerate with caution, and always be ready to apply the brakes. Create your winter emergency kit, and store it in your trunk. If you’re venturing out into a winter storm, preparing for an emergency is a must. Always keep cold-weather gear in your car, including warm clothing, extra food and water, a flashlight, a glass scraper, and more. (If you’d like a copy of our book, “Be Prepared,” we’ll send you a copy for free. Just text “PREPARED” to 312-847-2428, and we’ll mail a copy to you — no questions asked.)
When the roads are caked in ice and snow, it’s always best to stay home. But what if you have to go out and trek through the storm? Unfortunately, winter weather conditions often cause the roads and highways to be dangerous. According to the National Highway Traffic and Safety Association (NHTSA), there were 440 fatal crashes and an estimated 33,000 injury crashes that happened in wintry conditions in 2019. Here are five tips to follow to keep you and your family safe this year while driving in winter conditions: Slow down and increase your following distance. It’s much harder to control or stop your vehicle while driving in slippery conditions. To avoid a fender bender or running through a red light, drive well below the speed limit and increase your following distance. Keep a safe distance while sharing the road with a snowplow. Don’t get too close to a snowplow on the road. They travel at a reduced speed, make wide turns, stop often, overlap lanes, and exit the road frequently. If you decide to pass a snowplow, use extreme caution.
2 www.shannonlawgroup.com
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