New to this area of law so apologies if basic. When your clients ask you if the personal injury settlement is taxable, what do you say? (I know that it’s not taxable federally and in most states, just wondering if there’s any other important info you add, including any relevant rules/laws and/or something like “you should consult a [financial advisor] [accountant]” )

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Generally speaking, PI proceeds are not taxable but I don’t give tax advice. You should consult with a CPA or tax attorney. That’s pretty much what I say word for word. I also have a disclaimer in my engagement letter.

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Helpful!! Thanks.

Usually I pantomime with panicking hand gestures and say “sorry, my English not so good”

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