Mesothelioma Victims Pay No Income Tax on Pain and Suffering Settlements
Why Is the Mesothelioma Victim’s Pain and Suffering not Taxable?
Pain and suffering damages are compensatory, meaning they are paid to make the mesothelioma victim “whole” again. Making the injured party whole again serves to restore them to the position they would have been in if the mesothelioma never occurred. If the injured party cannot participate in activities that they enjoyed previously to the injury—such as sports, hobbies, socializing, and more—they can be compensated for the loss of enjoyment of life.
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Other factors that may be used to ultimately decide the pain and suffering damages include:
Injury severity and level of pain
How long the victim will suffer
Changes in daily life and ability
Mental and emotional suffering
Medical documentation to validate extent of injury
Exceptions
If your case should go to a jury and you are awarded punitive damages for outrageous conduct of the defendant, this money would be taxable. However, this potentially taxable portion does not occur very often.
If a mesothelioma victim has already benefitted from a tax deduction in previous years due to related medical expenses and is awarded a settlement to compensate, that money is subject to taxation.
The Halpern Law Firm has over 35 years of experience with handling mesothelioma and asbestos-related cases in Pennsylvania. Fill out our form for more information or call us at (800) 505-6000 for a free consultation.
