Personal Injury Legal Settlement Net Payout Calculator
Calculate client net cash in pocket from legal settlement awards after attorney contingency fees (33.3% / 40%), medical liens, case litigation expenses, and taxability.
Calculated Results
Frequently Asked Questions
Are personal injury legal settlements taxable by the IRS?
Under Internal Revenue Code Section 104(a)(2), compensatory damages received on account of physical injuries or physical sickness are 100% free from both federal and state income taxes. However, punitive damages and interest are fully taxable.
What is a standard personal injury contingency fee percentage?
Most US personal injury lawyers work on a contingency fee agreement: typically 33.33% (one-third) if settled prior to filing a formal lawsuit, and 40% if a lawsuit is filed, discovery commences, or the case goes to trial.
What are medical subrogation liens in a settlement?
Health insurance companies (Medicaid, Medicare, Blue Cross, private insurers) that paid your medical bills following an accident have a legal subrogation lien to be reimbursed from your gross settlement proceeds before net funds are disbursed to you.
Can attorneys negotiate medical liens down?
Yes. Skilled trial attorneys routinely negotiate with hospital billing departments and health insurers to reduce outstanding medical liens by 20% to 50%, putting significantly more net cash directly into the injured client's pocket.