Not usually. Compensation is only taxed in a few rare instances, such as when it’s actually interest from a larger sum of compensation or received as punitive damages. Normally speaking, compensation received for personal injuries won’t be considered income by the federal government and, as such, will be exempted from tax requirements for that claimant.
If you have questions or concerns about how the legal system or how compensation works in a personal injury lawsuit, an attorney at Patino Law Firm can help you. For more information about your rights and options in McAllen as an injured claimant seeking compensation, contact us today.