Is My Car Accident Settlement Taxable in California?

When you are injured in a traffic accident, you can hold the negligent driver or party responsible for the accident liable for your damages. In other words, if you did not cause the collision, you might be entitled to receive money from the party who did cause the crash. However, that money could be taxable as income in some cases. Compensation for Pain and Suffering The money you receive as compensation for the pain and suffering from your physical injury or illnesses is not considered taxable income by the Internal Revenue Service or the California Department of Revenue.  This also includes the amount you receive for the emotional distress or mental anguish you suffer because of the physical injuries or illnesses. However, if your claim is for emotional distress or mental anguish that did not result from a personal physical injury or illness, you may owe income tax on all or a portion of the settlement.

Deadly Crash Claims Four Lives in Fresno County

A deadly crash last week claimed the life of one person in Madera Ranchos. The traffic accident was caused by a driver running a stop sign and colliding with another vehicle according to a report by ABC30 News. The driver of an SUV ignored a stop sign before colliding with another vehicle that was stopped at the intersection. The driver of the other vehicle was killed in the collision. According to the report, the driver of the SUV that caused the accident was transported to the hospital and arrested for driving under the influence of marijuana. The driver faces multiple charges related to the accident.

Two Killed In 605 Freeway Crash Near Cerritos

According to a report by KTLA, a crash on the 605 Freeway this past weekend claimed two lives and left three people injured. The accident, which occurred around 1 a.m. Saturday morning, at the 91 Freeway exchange closed both sides of the 605 Freeway for more than eight hours. California Highway Patrol was still investigating, but officers said that alcohol and speed might have been contributing factors in the accident. Six vehicles were involved in the early morning crash. A CHP release stated that one man died at the accident scene and a 24-year old Huntington Beach resident died after being transported to a local hospital. Three other people sustained injuries in the collisions.