Car accidents are getting very common in Las Vegas. Most accidents are due to reckless driving, drunk driving, failure to yield, etc.
There are many law firms in Nevada, such as Naqvi Injury Law that have experience in dealing with car accident cases. If you are the victim of a car accident, an experienced attorney can help you get fair compensation from the insurance company or the at-fault party.
What comes under reckless driving – are you a victim?
Reckless driving is the result of a person behind the wheels who is not cautious. Most often than not, these people violate traffic rules and create havoc on the roads.
People under the influence of substances or alcohol may also drive recklessly. The consequence of an accident due to reckless driving can be devastating. It can result in large car crashes resulting in the instant death of the driver or passengers.
If you are suffering from the after-effects of a reckless driving accident, you can contact an attorney to sue the person liable.
Is your insurance compensation taxable?
In most cases, you do not have to pay tax for compensation. A victim usually gets compensation for medical bills, the repair cost of the vehicle, etc. It will allow you to use the money to focus on your recovery.
However, if you receive compensation for lost income, it is taxable. Similarly, the money you receive for emotional distress is taxable in Nevada. But, there are some legal complications here. If the emotional trauma is due to the physical injury due to the accident, then it is non-taxable. Your attorney can help you figure out the nuances in such a case.
Filing a tax return, including the compensation amount is a tedious process.
If you are finding it difficult to do it on your own, you can seek the help of a tax attorney. There are so many experienced attorneys who deal with similar cases. They can make the whole process hassle-free for you. Sometimes, compensations come in installments. So it is better to hire a tax attorney to understand the settlement structure and file claims.
Concluding thoughts
You can contact a law firm that helped you with the car accident case to figure out the tax return plans on the compensation amount, and if you are not satisfied with them, you can try other firms in your area.
Most law firms have websites listing their service areas and give free first consultations. So, don’t think twice, make a call and resolve the tax dilemma you are facing.