How is a settlement for a personal injury calculated?
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How is a settlement for a personal injury calculated?
I slipped on an wet sidewalk at a business. It was not marked and they accept liability. I have under gone 2 surgeries and 2 seperate stays in the hospital. In a settlement when they say 3 times medical bills, does that mean they pay my medical bills and pay me 3 times that amount? Also, do I pay taxes on the settlement?
Asked on October 10, 2014 under Personal Injury, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Generally, if the settlement said you'd receive "three times medical bills," you get a total of an amount equal to three times the bills--not three times the bills plus having the bills paid as well. However, you need to reference the precise language of the settlement agreement, since settlements are contracts: the parties can agree to essentially anything they want to agree to, and whatever they do agree to in writing will be the settlement.
As to taxes: generally, the personal injury award is not taxable, but if there punitive damages, those would taxable, and any interest on the award is taxable.
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