Understanding the Different Types of Personal Injuries From a New Mexico Accident
If you have been hurt in a serious motor vehicle accident involving a passenger car or large commercial truck, or if you have been injured while riding a bicycle, motorcycle, or as a pedestrian, you may be entitled to compensation under New Mexico law. The types of personal injuries from a New Mexico accident can dictate what damages you may be entitled to. It is important to know what these types of damages can be, because you can identify them and tell your personal injury lawyer in Albuquerque, NM what you have been injured with. But it also helps you understand what your tax liabilities may be. While most personal injury settlements and awards are not taxes, that is not always true!
Understanding Damages
Generally, “damages” is the term for the relief that you may be entitled to under New Mexico law in a lawsuit. Damages can be several different things, but in personal injury actions the damages awarded are usually monetary compensation. Some of the important damages that you need to know about include the following:
Pain and Suffering
This is usually the largest type of damages and it is non-economic, meaning that it cannot be calculated. Pain and suffering can be “past pain and suffering,” or from the accident to the time of payment, or “future pain and suffering” which is from the payment until the end of your life expectancy.
Pain and suffering is very important to understand because it can be really important for you to explain to a jury or judge. For instance, pain and suffering relates to your conscious agony and discomfort from the injuries, recovery, surgery, and overall treatment.
Physical pain and suffering is NOT taxable and you will not have to pay any state or federal taxes on it.
Medical Bills and Expenses
This is reimbursement for your past medical bills and healthcare expenses, as well as your future expenses. This includes all expenses related to your condition. This is also NOT taxed as part of your settlement under federal or state taxes. Out of all the types of personal injuries from a New Mexico accident, this one can be tricky if there are continued expenses or future expenses, or if there are issues with medical liens or insurance liens.
It is important to note that medical bills and expenses can also be for wheelchairs, medical equipment, and other devices.
Emotional Damages
If you suffer emotional damages such as PTSD or other emotional injuries that are not related to the physical pain and suffering that you experience, this COULD be taxed. These damages are related to the post-accident emotional harm that you suffer like depression or anxiety too. It is important to have a lawyer who knows how to separate these damages and include a settlement for them into physical pain and suffering.
Lost Wages
Generally, lost wages are from the accident, your disability, treatment, or other circumstances relating to the negligence. In most instances, lost wages are not taxed if they are related to the personal injuries. However, there are instances where lost wages could be taxable. It is important to have an experienced lawyer representing you to advise you what is and is not taxable, and whether your settlement could be inclusive of lost wages but be labeled as pain and suffering.
Loss of Consortium
Relations with your spouse can be damages in a lawsuit known as loss of consortium. While most people think that it is just about romance, it is actually also able the general society and time spent together too. There can be a loss of consortium claim for children, siblings, or parents as well. The claim is generally for the interaction of family members together. Generally, loss of consortium is also not taxed.
Punitive Damages
In rare by exceptional cases, punitive damages may be used to punish a defendant for certain misconduct that is grossly negligent, wanton, recklessness, and so flagrant to transcend what is reasonable. Punitive damages are to deter future conduct and remedy an injury for the public at large.
Punitive damages ARE taxable, and usually fully taxed. This means that they will be hit hard and it needs to be claimed at tax time.
Injured in New Mexico? Ask our Personal Injury Lawyer in Albuquerque, NM for Help
Here at the Caruso Law Offices, P.C., we know how to protect the rights of individuals in New Mexico who have been hurt by the negligent conduct of others. Whether it is a trucking accident which is what we are known for, or any other type of auto accident, motorcycle crash, pedestrian hit by car, or other claim, learn how we can help protect your rights to compensation. We offer FREE consultations and can help ensure that you receive the compensation that you need to more forward and heal.
Call for a FREE consultation by dialing (505) 273-2978 for your consultation. We handle causes throughout New Mexico, including Las Cruces, Santa Fe, Roswell, Cuervo, Rio Rancho, Clovis, Farmington, Hobbs, Albuquerque where our office is located, and anywhere else throughout New Mexico. Please call to schedule for FREE appointment by dialing (505) 273-2978 or contact us through our website’s easy to use and convenient contact box available here.
