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Are Car Accident Settlements Taxable?

Being injured in a car accident can be a traumatic experience, costing you peace of mind, time, and money. Dealing with your insurer may be one of the worst parts of the entire process. You’re just trying to recover while your insurance company is doing everything they can to make excuses and justify why they don’t owe you anything. Their lawyers are ready to prove their side in court because not paying you is better for their business. That’s why it’s a good idea to get a car accident lawyer of your own.

Filing a suit against your insurance company or even against another person involved in an accident is a complicated process, but expert car accident lawyers like Murry Parrish and Pepper DeVaughn can help you. The Parrish DeVaughn Law Firm helps car accident victims in Oklahoma City, Edmond, and Tulsa. Find out how they can assist.

Anything You Say Can Be Used Against You

Testimony holds power and that includes what you say outside of a courtroom. For the best results from your case, it’s important to know exactly what you should be saying. After a car accident where one person is clearly at fault, people involved will likely tell completely different stories about what happened. Sorting through the truth can be hard for a jury, but the car accident lawyers at Parrish DeVaughn Law Firm know how to lessen the credibility of your opponent, so the truth can emerge.

Insurance companies, on the other hand, are far more dangerous to deal with. With their team of lawyers working together against you, you may feel outmatched. They will be quick to shine a light on any type of confession you might make, so make sure you never claim liability, even casually. Parrish DeVaughn Law Firm can help with the process. Their car accident professionals aren’t afraid to go against insurance company lawyers because you deserve the best coverage possible.

How Your Lawyer Helps You

Evaluating the value of your claim is one of the primary parts of any car accident case. Insurance companies are incentivized to value you for the lowest amount of money they can get away with. That’s how they keep their bottom line. Adept car accident lawyers like those at Parrish DeVaughn Law Firm, however, can get you an objective and accurate evaluation to ensure you get the money you deserve.

Evidence for car accident cases is essential, and car accident lawyers know exactly what you need. Generally, you should take pictures of the damage or obtain a copy of CCTV footage of the accident. Car accident lawyers excel at gathering the proper evidence and coaching you on how you can do it yourself. They also gather witnesses whose neutral testimony could be invaluable for your case.

Will Your Settlement be Taxed?

Your settlement earnings will not be taxed in the vast majority of cases. It greatly depends on what you’re winning money for. If you’re claiming that money is owed to you to cover costs of medical bills, rental cars, and repairs for your crashed car, that is not going to be taxed. The experts at Parrish DeVaughn Law Firm can help you determine if your earnings are taxable.

Some earnings from cases are, in fact, taxable. If your injury prevented you from working for an extended period of time, your suit may have included wage reimbursement. If that’s the case, income taxes apply just as they would to your normal income for time worked. At times, the opponent in your case is particularly awful. Depending on their level of maliciousness or gross negligence, punitive damages may be incurred. These are meant to punish the guilty party as a lesson rather than cover your losses. Money earned from this aspect will be taxed.

The Best Car Accident Lawyer

Don’t let insurance companies have the final say. You are entitled to more than their bottom line. Hiring a car accident lawyer is the best way to ensure you get what you deserve. The qualified professionals at Parrish DeVaughn Law Firm stand ready to help you as tehey have for so many in Tulsa, Edmond, and Oklahoma City. Contact Parrish DeVaughn Law Firm for a free consultation and start building your case today!