Legal Question in Medical Malpractice in Missouri
Taxes???
If you win a malpractice lawsuit, do your winnings get taxed?
Say if I win $1,000, lawyer gets 35%, that would leave me with $650. Does that $650 get taxed?
Asked on 3/04/03, 3:08 pm
1 Answer from Attorneys
Spencer Farris
The S.E. Farris Law Firm
Re: Taxes???
Probably not. The current IRS position is that personal injury verdicts and settlements are treated as a return of capital, and therefore not income. If part of the verdict is for lost wages, this would be taxable, as would punitive damages under most views.
Answered on 3/04/03, 3:41 pm
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