What is a Settlement in a Personal Injury Case?

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If you and your attorney are able to prove your case, you’ll be awarded a settlement that covers the cost of your damages. This includes your medical bills, lost wages, lost earning potential, and in some cases pain and suffering.

An experienced Omaha personal injury attorney from Knowles Law Firm is standing by to provide you with a risk-free, cost-free case assessment to discuss options on how we can help.

The Personal Injury Claim Filing Process in Nebraska

Under Nebraska laws outlined in Chapter 25 of Nebraska’s legislature, injured persons have a right to bring personal injury claims through civil law proceedings. A civil law proceeding is a case or lawsuit, which are necessary when the insurance company responsible for compensating you will not come to a fair settlement agreement. Cases require that the rules, procedures, and deadlines of your local court are followed.

In Nebraska, you have 4 years from the time of your injury to file your personal injury claim in the court. This is known as the “statute of limitations”, which is basically an expiration date on your rights to file a lawsuit against the party responsible for your injuries.

To present a strong case in support of your compensation, it is important to have the date and time of your accident, witness testimonies linked to the accident, the full details concerning your injuries and treatment plan, as well as a full accounting of the losses to your person and belongings.

Personal Injury Settlements are Often Non-Taxable

When it comes time to collect compensation for your damages, the amount you receive will generally not be taxable.

The following aspects of personal injury settlements are non-taxable:

  • Loss-in value of your property –
  • Personal physical injury and illnesses –
  • Emotional distress –

You can only collect compensation for damages that you can prove. Your local Omaha personal injury attorney will gather all the evidence you need to make the most of your settlement, portions of which will be taxable.

Some elements of a personal injury settlement can be taxable, including:

  • Emotional distress – when the emotional distress did not originate from a physical injury that part of your settlement will be taxable
  • Interest – taxable in any settlement
  • Lost profits – for business settlement the part of your compensation for running the business will be subject to a self-employment tax
  • Itemized deductions for your medical costs – any itemized deductions taken for medical expenses from physical injuries in your settlement must be reported in your income
  • Lost wages – when you recover damages for an employment-related lawsuit, the lost wages portion of your settlement is taxable, and may be subject to additional taxes
  • Punitive damages – punitive damages are meant to punish and deter the party for and from the behavior that led to your injuries, and generally they are taxable and should be reported

Connect with Your Omaha Personal Injury Lawyer Today

The sooner you have an attorney on your case, the sooner you can step back and let your attorney handle the process for you. Schedule a consultation or call us at (402) 575-9949 to explore options.