Truck accident settlements aren’t usually taxable in Wisconsin. That said, there are some damages you can receive after a truck crash that can be taxed. If you’ve been injured in a truck collision, you’ll want to hire a truck accident lawyer as soon as you can.
Hiring a trusted Wisconsin truck accident lawyer early on will ensure your injury claim or lawsuit is as strong as possible. An attorney can answer any questions you have about your settlement and fight for compensation and justice on your behalf.
Let’s take a closer look at whether truck accident settlements are taxable in Wisconsin and what a lawyer can do to get a fair outcome for you.
A Lawyer Can Determine if Your Truck Accident Settlement is Taxable in Wisconsin
After a truck crash, you need every penny of compensation you get from your claim or lawsuit to cover your medical bills, replace lost wages, and support yourself while you recover. It’s only natural to wonder whether the government will take a portion of your compensation by taxing your settlement.
Whether your truck accident settlement is taxable in Wisconsin depends on the type of compensation you receive. While tax laws generally make compensation for physical injuries exempt from taxation, certain portions of a Wisconsin truck accident settlement may be taxable.
A knowledgeable truck accident attorney can review the details of your case and determine if any of the damages you’re eligible to receive could be taxed. Your lawyer will answer any questions you have about settlement taxes and fight to get the most out of your claim.
For a free legal consultation, call 414-276-6666
What Parts of a Truck Accident Settlement are Taxable?
While most damages you can receive from a truck accident settlement in Wisconsin are not taxable, certain categories are subject to taxation. Understanding which damages are taxable can help you make smart financial and legal decisions.
The following portions of your truck accident settlement may be taxable:
Punitive Damages
Unlike compensatory damages, which reimburse truck accident victims for their losses, punitive damages are intended to punish the at-fault party for extreme negligence or reckless behavior. Because they are not tied to a direct financial loss, the law considers punitive damages to be taxable income.
A lawyer can determine if pursuing punitive damages is appropriate for your case and answer any questions you have about whether your compensation will be taxed. Your attorney will work hard to obtain the damages you need to get back on your feet regardless of whether your truck accident settlement is taxable in Wisconsin.
Interest
If your case takes time to resolve and your settlement includes accrued interest, that portion may be considered taxable income. Interest on a settlement typically accumulates when a case is delayed due to negotiations, court proceedings, or other reasons.
For example, if your settlement is awarded in court but the defendant delays payment, you may be entitled to interest on the amount owed. While interest provides compensation for the time you have to wait to receive your settlement, it can also create a tax obligation.
Your lawyer can advise you on the taxes you might incur if your settlement is delayed. Whether your Wisconsin truck accident settlement is taxable or not, your attorney will work hard to get you the financial support you need to move past this unfortunate accident and the injuries you’ve sustained.
Damages You Can Receive from a Truck Accident Settlement
Now that you know more about taxes on truck accident settlements in Wisconsin, you’re probably wondering which damages you can receive from a settlement. Depending on the injuries, financial losses, and intangible struggles you’ve been burdened with due to the incident, you could get any of the following remedies from a claim:
- Medical bills
- Physical therapy costs
- Lost wages
- Decreased earning ability
- Vehicle repair expenses
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
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Do You Need a Lawyer to Handle a Truck Accident Settlement?
Handling a truck accident case on your own is one of the biggest mistakes you can make after a collision. Without an experienced attorney’s advice, could make mistakes that result in a denied claim. Fortunately, a trusted truck accident lawyer can get a fair settlement for you by taking the following actions:
- Assessing the full value of your claim
- Investigating the crash and gathering evidence to strengthen your case
- Negotiating with insurance companies to secure the highest possible settlement
- Determining if your truck accident settlement is taxable in Wisconsin
- Representing you in court, if necessary
- Keeping you updated on your case and answering any questions you have throughout the claims process
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Schedule a Free Consultation with a Truck Accident Lawyer
At Gruber Law Offices, we understand how difficult it can be to move forward after you’ve suffered painful injuries in a truck crash. That’s why our trusted team of over 130 legal professionals is here to provide the compassionate legal counsel and fierce advocacy you need to obtain a fair settlement.
We’ve helped tens of thousands of clients get fair compensation for their accident-related injuries and losses. Headquartered in Milwaukee, we take pride in serving clients all across Wisconsin. We can draw on our extensive experience to get the best results possible for you. Make One Call…That’s All! today to schedule a free consultation with an attorney and find out if truck accident settlements are taxable in Wisconsin.
Call or text 414-276-6666 or complete a Free Case Evaluation form
