Eddie Carey
Junior Member
Texas (only U.S. law)?
Hello, hope someone can help
I have been on social security disability since 2003 and received my implant that year. In 2008 I received a Personal Injury Settlement from Medtronic relating to a faulty medical device that needed to be replaced. From my understanding the settlement was awarded for the device battery failure and that the units needed to be replaced, mine did fail prematurely.
The lawfirm required me fill out a tax form I believe it was a W-2 before I could receive my first of two checks, only the amount for the first check was applied. There was no requirement of this nature for the second check. When I ask will I need to pay income tax on the settlement I was told that they are not a tax lawfirm and they could not give advice or direction on any questions concerning income tax. Should I expect a 1099 from them?
Here is what I know about the settlement. It was not punitive, no lost wages, no sickness, no property damage, no treatment for psychological or physical injuries (believe me there was distress), no interest earned on settlement reward.
Where sickness, psychological or physical injuries were concerned they required full documentation and medical records. This did not apply to me if so I would have received a larger settlement amount or so I was informed by the lawfirm.
Section from the General Release:
The settlement proceeds identified herein are specifically allocated to the alleged personal injury and physical sickness suffered by the Releasing Party. Medtronic specifically denies any liability for punitive damages and no portion of the settlement proceeds are allocated to punitive damages, property damages, lost wages or any form of damages except alleged personal injuries and physical sickness.
As I have researched I find that there is no income tax on this. Am I correct? If so what should I prepare for? If anything.
And the reason that I ask for you help is am I incorrect and own taxes?
Thanks in advance for any help
Eddie Carey
Hello, hope someone can help
I have been on social security disability since 2003 and received my implant that year. In 2008 I received a Personal Injury Settlement from Medtronic relating to a faulty medical device that needed to be replaced. From my understanding the settlement was awarded for the device battery failure and that the units needed to be replaced, mine did fail prematurely.
The lawfirm required me fill out a tax form I believe it was a W-2 before I could receive my first of two checks, only the amount for the first check was applied. There was no requirement of this nature for the second check. When I ask will I need to pay income tax on the settlement I was told that they are not a tax lawfirm and they could not give advice or direction on any questions concerning income tax. Should I expect a 1099 from them?
Here is what I know about the settlement. It was not punitive, no lost wages, no sickness, no property damage, no treatment for psychological or physical injuries (believe me there was distress), no interest earned on settlement reward.
Where sickness, psychological or physical injuries were concerned they required full documentation and medical records. This did not apply to me if so I would have received a larger settlement amount or so I was informed by the lawfirm.
Section from the General Release:
The settlement proceeds identified herein are specifically allocated to the alleged personal injury and physical sickness suffered by the Releasing Party. Medtronic specifically denies any liability for punitive damages and no portion of the settlement proceeds are allocated to punitive damages, property damages, lost wages or any form of damages except alleged personal injuries and physical sickness.
As I have researched I find that there is no income tax on this. Am I correct? If so what should I prepare for? If anything.
And the reason that I ask for you help is am I incorrect and own taxes?
Thanks in advance for any help
Eddie Carey