Orlando, FL asked in Personal Injury for Florida

Q: Accident policy through work is offering a lump sum settlement instead of monthly payments. I am currently paying taxes

On monthly payments. Will I have to pay taxes on lump sum due to a injury I received and on disability.

Related Topics:
1 Lawyer Answer
Domenic J. Celeste
Domenic J. Celeste
  • West Palm Beach, FL
  • Licensed in Florida

A: I'm not quite sure what you mean by your employer's "accident policy." Are you talking about its workers' compensation insurance policy or your employer's short/long-term disability policy? Work comp is tax free whereas short/long-term disability is taxable. I think you are talking about short/long-term disability, in which case, it doesn't matter if it's monthly or lump sum. However, usually, the lump sum payout is less than what you would get if you continued getting monthly payments. It's a way for them to save a little money, and for you to just collect it all at one time and not risk not getting paid out (like in the case of a death or something).

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.