Legal-Bay Pre Settlement Funding Announces New Changes to Personal Injury Settlement Taxes
JERSEY CITY, NJ, April 15, 2019 / PRNewswire / – Legal-Bay LLC, The Pre Settlement Funding Company, today announced that the president recently backed a new law that would impose a tax on payments of certain personal injury settlements. Previously, all personal injury settlement payments were tax exempt. But with the new law, some damages will not be paid to the plaintiff without a good chunk of them being given to Uncle Sam.
Legal-Bay is a leading advocate for personal injury pre-resolution and is known as one of the top lawsuit finance companies. Legal-Bay is also a source of information for its clients when new laws may affect their settlement amounts or settlement values.
Chris Janish, CEO, commented on the changes: “Although Mr. Trump had a program to simplify tax codes, this significant change actually only further complicates matters for plaintiffs who have suffered and must now navigate through delicate tax consequences at a time when they do We are disappointed with how these changes will affect our clients, and we need to make sure they are aware of them so that they are not hit by a bigger tax bill later on. “
You can complete an application on the Legal-Bay website: http://lawsuitssettlementfunding.com or you can call our toll free hotline at: 877.571.0405
In most situations, you will not have to pay tax on the physical the sums you receive for the settlement of bodily injuries. However, this is when you receive damages for emotional the injuries you suffered as the new tax law kicks in.
Compensatory damages are amounts intended to reimburse a plaintiff for physical damage, injury or other quantifiable loss due to the negligence or unlawful conduct of the defendant. The new law will not affect the amount of taxes paid on such damages.
Punitive damages are additional sums awarded to a plaintiff when the defendant’s behavior is found to be particularly harmful. Punitive damages are considered penalties and are usually awarded at the discretion of the court. The new law will affect the amount of taxes paid on such damages.
THIS IS NOT ALL THERE IS, HOWEVER:
Obviously, the wording of your claim will be the most important distinction when claiming damages, as the changes made Trump Tax Law are not quite so cut and dry. And figuring out which injuries are “physical” and which are “emotional” is confusing to say the least.
1. PERSONAL INJURY
Bodily injury would include any physical harm to the complainant, including illness. Personal injury lawsuits are brought when losses resulting from an accident or other incident where the negligence or willful conduct of someone else has caused injury to the plaintiff. Cases that fall under the rubric of “bodily injury” include slips and falls, traffic accidents, medical malpractice, etc.
Any settlement payment for these types of damages will remain tax free.
2. EMOTIONAL PAIN AND SUFFERING FROM PHYSICAL INJURY
The new tax law will apply if the claimant receives compensatory damages for any emotional distress inflicted by the bodily injury. Personal injuries may have been caused by a traumatic event and, because of this, the emotional consequences can seriously affect a person’s daily life.
Any settlement payment for these types of damages should remain tax free.
3. EMOTIONAL DISTRESS
A victim of intentional or negligent actions caused by another person can sue for emotional distress. Emotional distress can be a life changing situation that you believe has been inflicted on you by another person or entity.
You can expect to pay taxes on any damage you may receive for emotional distress.
4. PHYSICAL SYMPTOMS OF EMOTIONAL DISTRESS
Emotional distress alone is not enough to avoid paying taxes on the damages you receive once a settlement is made, and even physical symptoms such as insomnia, headaches, and stomach aches will simply be. classified as emotional distress.
Any settlement payment for these types of issues will most likely be taxed.
SO WHAT CAN I DO?
If you can make good investments over the next twelve months, you may be able to offset all the new taxes before it’s time to file next year. The sooner you can jump over things, the better. If you’re wondering how, read on.
Did you know you could get your hands on some of your settlement money before your case was even decided? The arrangement is known as the pre-settlement cash advance, also known as lawsuit funding or case funding. Legal-Bay will be happy to talk to you about your options. They have a whole team of very qualified and very dedicated employees who will be able to offer all the details and answer all your questions.
If you are involved in an ongoing lawsuit and are looking for a cash advance now before your case is settled, you can complete a request on their website: http://lawsuitssettlementfunding.com or you can call their toll free hotline at: 877.571.0405 where agents are on hold.
All Legal-Bay financing programs are risk free and involve no upfront expense; you only pay if your file is successful. The non-recourse loan is not a lawsuit loan, lawsuit loans, settlement loan, settlement loans, pre-settlement loan, or pre-settlement loans.
Legal-Bay is committed to helping victims of car, truck or boat accidents, hospital or medical malpractice, pain and suffering, and specializes in funding plaintiff lawsuits in cases of bodily injury including slips and falls, premises liability, product liability, defective pharmaceuticals. drugs, as well as wrongful conviction or death, wrongful dismissal, sexual harassment / abuse or discrimination in the workplace, and all civil cases where the complainant has previously retained the services of a lawyer.
Warning: Legal-Bay is not a tax consultancy company. Nothing in the press release should be taken as official tax information. Please seek professional tax help for a full understanding of all tax laws.
Chris Janish, CEO
E-mail: [email protected]
SOURCE Legal-Bay LLC