Are Proceeds From a Wrongful Death Lawsuit Taxable Under Illinois Law?
No. Proceeds from a wrongful death lawsuits are not taxable in Illinois. However, portions of other forms of compensation might be taxable so it is important to speak with an attorney to understand your tax consequences.
- What Lawsuit Compensation Is Taxable?
- Why Does The Government Have These Tax Policies?
- What Does This All Mean For my Taxes?
- What's The Penalty For Not Paying Taxes On Lawsuit Compensation?
- What Can I Obtain In An Illinois Wrongful Death Case?
- Do You Have More Questions Regarding Illinois Wrongful Death Cases?
What Lawsuit Compensation Is Taxable?
The vast majority of compensation that you will come across in civil injury cases is not taxable. This includes damages received for personal injuries, wrongful death, healthcare bills, mental suffering, and lost wages. What is taxable? Here are some things that the government can touch:
- Punitive damages
- Interest payments
- Trademark infringement
- Other non-injury amounts.
Note, the demarcation between tax liability lies more on the nature of the injury and less on type of case.
Why Does The Government Have These Tax Policies?
What Does This All Mean For my Taxes?
What's The Penalty For Not Paying Taxes On Lawsuit Compensation?
As you can imagine, it might get tricky determining what is and what is not taxable after receiving compensation for an Illinois wrongful death case. Not only do you have to consult Illinois laws but you have to reference and understand IRS rules. The penalties can be significant if you fail to acknowledge and abide by them. Failure to pay required taxes can result in financial penalties and even jail time. Therefore, it is essential that you consult tax law and speak with an attorney after receiving a wrongful death award.
What Can I Obtain In An Illinois Wrongful Death Case?
After learning about the obligations and responsibilities you have following an Illinois wrongful death case, you might be wondering what it's worth? While it is hard to give an exact number, it is easy to point to areas of compensation where you might find recovery. For instance, identify the expenses that the death caused you and then consider how the loss will leave you intangibly changed going forward. These kinds of economic and non-economic injuries are normally where plaintiffs recover the most. Once you're done estimating these figures you'll have a better understanding of what you can obtain in an Illinois wrongful death case.
Do You Have More Questions Regarding Illinois Wrongful Death Cases?
Rosenfeld Injury Lawyers LLC commits every day to helping families suffering from the loss of a loved one related to some of the following incidents: car accidents, motorcycle accidents, truck crashes, nursing home abuse and medical negligence. We work to get the most compensation available to them under Illinois law. As with all our other personal injury cases, we work on contingency which means you won't have to pay a nickel until there is a recovery that you approve. Call Rosenfeld Injury Lawyers LLC today and begin the process of getting the award that you deserve.