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Do I owe taxes on my Workers’ Compensation (WC) or Personal Injury (PI) Settlement?

It’s almost tax time! Have you received a Workers’ Compensation settlement or a Personal Injury settlement and wondering if these settlements are taxable income? Some of the answers are straightforward while others are not. Keep in mind, we are not tax lawyers or certified public accountants, so you should always run tax questions by the most qualified individuals, like your accountant.

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What is “Billed vs. Paid” and how does this affect my Personal Injury claim?

Were you in a car wreck or trucking accident and trying to figure out why your medical bills are piling up and not getting paid? After all, you were not at fault in this accident! Personal Injury claims in North Carolina can leave you feeling like you got the short end of the stick at times, and unfortunately, that feeling could extend to the settlement of your claim as well based on some applicable NC laws.

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An Accident With a Commercial Truck is NOT the Same as a Car Accident

Taking to the highways instead of only using city streets can be one of the most time efficient ways of getting to your end destination. The only drawback, as we have all experienced, is that the highways have become the primary domain of commercial trucks! They are everywhere -- from 18-wheelers to service pickup trucks -- the highways are littered with them.

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Is My Injury Covered by Workers’ Compensation

Workers’ compensation laws can be tricky to understand. They vary by state, they’re complicated, and at first glance, they can seem overwhelming. Workers’ compensations laws are put into place to help you get the help that you need when you’ve suffered from a workplace injury, regardless of if it was your fault or your employer’s.

However, not every work injury is covered under workers’ compensation.