Los Angeles, CA personal injury attorney Narbeh Shirvanian talks about personal injury settlements and whether or not they are taxable. He points out that one of the most common questions clients ask when receiving a settlement check is whether the amount will be subject to taxation. While his firm does not provide tax preparation services and is not a substitute for a CPA, he consistently advises clients to consult a tax professional for guidance tailored to their situation. Generally, settlements for bodily injury are not considered taxable income, as they are compensation for harm suffered rather than earned wages.

He cautions, however, that exceptions may exist. For instance, if a client has previously deducted medical expenses on their tax returns, there could be potential tax implications when receiving the settlement. To ensure clients fully understand their tax obligations, he emphasizes the importance of reviewing settlement details with a qualified CPA or tax consultant.