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Taxes Paid on a Personal Injury Award

A good defense attorney is always trying to defeat Plaintiff's personal injury claims or mitigate the Plaintiff's damages. In this blog we discuss the Defense attorney's attempts to diminish the damages that the Plaintiff is seeking.

An improper argument that a defense attorney may want to try to make would be that the Plaintiff would not be subject to any Federal income tax or any form of taxation on any monetary award that the jury awards him/her. This might serve to bias or prejudice the jury against the Plaintiff or at a minimum, have them reduce the amount of the award by some amount the jury believes the Plaintiff should have had to pay in taxes.

Of course, juries like to compare their own situation with the Plaintiff and they may feel that if they have to pay taxes then they may hold that against the Plaintiff as to he/she not having to pay any federal income tax on a personal injury award. Therefore, it is important that a good Plaintiffs attorney prohibit the defense attorney from raising this issue to the jury so that there may not be any reduction by the jury in the amount awarded to the Plaintiff.

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