Do you need to pay tax on that large lawsuit settlement?

AKRON, Ohio (News Anyway) – So you have just been awarded a large cash payout after winning a personal injury claim. We all know that death and taxes are inevitable in this fantastic world we live in.

Not so fast, there are grey areas, and sometimes the law is quite vague, resulting in some loopholes.

Approximately 95% of personal injury lawsuits go to trial – the rest are settled out of court.

Let’s look at the general rules and see whether you need to hand over a large chunk of your settlement to the taxman.

We will also try to answer the question “is a lawsuit settlement taxable?”

Although different states have different rules, we chose the state of Florida to focus on for this article.

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