Is A Car Accident Settlement Taxable Income?

There are a few different things that may be taken out of your car accident settlement. One possibility is attorney's fees, which are typically a percentage of the settlement amount. If you hired an attorney to represent you in your car accident case, you will likely be responsible for paying the attorney's fees out of your settlement. Other expenses that may be taken out of your settlement include any medical bills or other costs that you incurred as a result of the accident, such as the cost of repairing or replacing your vehicle. If you received any advance payments from your insurance company or other sources to cover these expenses, you may also be required to pay back some or all of these advances out of your settlement. It is important to carefully review the terms of your settlement agreement to understand what may be taken out of your settlement before you agree to it.