Frequently Asked Questions

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Do I have to pay taxes on any recovery I make for a personal injury?

ANSWER: We always encourage people to consult a tax attorney if they have any concerns in this area, as we are not qualified to adequately advise people regarding tax issues. But, general answer is no for most personal injury claims even though they may include compensation for lost income. This is one area Uncle Sam has not touched for the simple reason that a personal injury recovery does not represent income but instead compensation for the losses you have suffered as a result of your accident. However, any recovery solely for lost income such as a claim you were wrongfully discharged from employment is taxable. Furthermore, punitive damages recoveries which are few and far between are taxable and you may even have to split your recovery with the state.
Kansas City Office
4717 Grand Ave. Suite 820
Kansas City, MO 64112-2258
Phone: (800) 444-7552
Fax: (816) 361-5577
Springfield Office
1021 E. Walnut Street
Springfield, MO 65806-2301
Phone: (800) 333-7552
Fax: (417) 566-5687