When you receive a settlement or award from a personal injury claim, navigating the tax implications in California can be as complex as the case itself. It's crucial to understand which parts of your compensation may be taxable. The Internal Revenue Service (IRS) sets guidelines on this matter, but state provisions can also play a role.

The good news!

Firstly, the good news is that most personal injury damages awarded as compensation for physical injuries or sickness are not taxable under federal or California state tax laws. It includes amounts received for medical expenses, pain and suffering, and legal fees associated with the physical injury claims. This rule generally applies whether you settled out of court or went to trial. However, there are exceptions. For instance, if you deducted medical expenses related to the injury on previous tax returns and received a tax benefit from those deductions, you might need to include the corresponding compensation in your taxable income to prevent a double benefit. This is known as the "tax benefit rule."

Some damages are taxable

Another point to consider is the distinction between physical and emotional injuries. Damages for emotional distress alone, without an accompanying physical injury, may be taxable. Also, if part of your settlement includes interest or punitive damages, these typically are taxable. Interest accrues on judgments from when the court awards damages until you receive payment, and the IRS considers this interest as income. Punitive damages are awarded to punish the defendant rather than compensate the victim and are generally taxable. If your settlement includes punitive damages, it's essential to have them listed separately in the settlement agreement or judgment to distinguish them from non-taxable personal injury damages. Lost wages or lost profits are often a part of personal injury claims, and these are usually taxable since they replace income that would have been taxable. This rule mirrors the taxation you'd face on regular income or profits.

It's best to have a financial strategy

Tax laws are subject to change, and nuances in your case may affect the taxability of your damages. It's always wise to consult with a tax professional or personal injury attorney who can help you understand the tax implications of your personal injury settlement in California. Remember, a careful approach to your settlement and its components can help ensure that you remain compliant with tax laws while maximizing the non-taxable benefits of your recovery. After all, personal injury compensation aims to help you recover from your losses, not create new financial burdens through unexpected taxes. [nap_names id="FIRM-NAME-3"] is a premier litigation firm in Southern California. Please contact us at [nap_phone id="LOCAL-REGULAR-NUMBER-1"]

Glendale, California is a popular city in the Greater Los Angeles metropolitan area. Glendale boasts a relatively high average household income and low crime rates when compared with other communities in Los Angeles. However, Glendale also holds a rather nefarious title. It is home to some of the worst drivers in the country. Researchers looking at local crash rates have found that the average Glendale driver goes less than 6 years between motor vehicle collisions. That is a major difference when compared with the safest drivers in the country, who go more than 14 years between crashes on average. Drivers in Glendale therefore need to be cautious to protect themselves from crashes. Those who understand that local risk is higher overall can make smarter travel choices. Learning about the local areas where crash risk is particularly high could be a smart choice. What roads in Glendale see the most collisions?

Busier Roads are More Dangerous

Some of the most-traveled roads in Glendale are among the most dangerous. They see a high number of collisions, particularly at well-traveled intersections. A high level of traffic combined with aggressive driving can easily lead to preventable collisions. Brand Boulevard is one of the most dangerous roads in the Glendale area based on crashes reported in recent years. Multiple intersections on Brand Blvd. see an elevated number of crashes, including the intersections at Sanchez Drive, Goode Avenue and Colorado Street. Glendale Avenue sees quite a few crashes as well, especially where it intersects with Wilson Ave., Chevy Chase Dr. and Broadway. Finally, both Western Avenue and Colorado St. also have elevated crash risk. Although it would neither be convenient nor efficient to completely avoid driving on Brand Boulevard and other high-risk roads, drivers can minimize when they travel on the most dangerous streets in Glendale. They can also watch more carefully when they approach intersections with a reputation for being more dangerous. Those who monitor their surroundings carefully, minimize left-hand turns and carefully follow traffic laws can potentially reduce their risk of a collision on busy streets. Learning about local crash trends may help Glendale drivers stay safer when they travel.

Delivery trucks have become an increasingly common sight on roads, especially with the rise of online shopping and on-demand delivery services. While they are crucial in keeping the economy running smoothly, they pose unique hazards to other motorists. Understanding the risks is essential for those sharing the road with these large vehicles. These five delivery truck hazards highlight why every driver should be extra cautious when navigating around them.

Size and visibility issues

Delivery trucks are typically much larger than standard passenger vehicles. This size difference can create significant blind spots for truck drivers, which makes it difficult to see other vehicles, particularly those driving close to the sides or rear of the truck.

Frequent stops and unpredictable movements

Delivery trucks often make frequent stops to drop off packages, which can be unpredictable for other drivers. A truck may suddenly pull over or re-enter traffic, creating potential hazards. These stop-and-go patterns can surprise other motorists, leading to rear-end collisions or sideswipes if there's insufficient time to react.

Longer stopping distances

Due to their size and weight, delivery trucks require a longer distance than smaller vehicles to come to a complete stop. If a delivery truck driver needs to brake suddenly, the truck might not stop as quickly as other motorists expect.

Maneuverability and turning radius limitations

Delivery trucks often have a larger turning radius and reduced maneuverability compared to smaller vehicles. This can be especially hazardous at intersections or in areas with tight turns. Drivers may not anticipate the extra space a truck needs to turn and may find themselves in a risky position if they are too close to the truck during these maneuvers.

Driver fatigue and pressure

Delivery drivers often face tight schedules and long hours, leading to fatigue. A fatigued driver is less alert, has slower reaction times and is more likely to make errors. All of these hazards can lead to crashes, which can injure innocent individuals. Those victims may opt to pursue a compensation claim to help offset the financial damages they're dealing with. California has strict laws governing these claims, so working with an attorney who regularly represents victims in similar situations is ideal.

Discussions of trauma often focused on criminal activity or war. However, people can experience trauma through less extreme circumstances. Individuals involved in motor vehicle collisions where they fear for their lives or witness extreme injuries to others may have a trauma response to the incident. Some people develop post-traumatic stress disorder (PTSD) after surviving a serious motor vehicle collision. What do drivers need to understand about trauma, PTSD and car crashes?

The symptoms may not be immediate

People don't immediately feel intense fear or other trauma symptoms after a car crash. Instead, they will be eager to resolve the situation as quickly as possible. It will be hours or sometimes days later that they start to recognize how they continue to perseverate on the crash. They may feel anxious when they see certain types of vehicles or hear certain noises. Their stress levels may skyrocket when they need to travel in a motor vehicle or drive. Early signs of PTSD can include difficulty sleeping, challenges relating to other people, disruptions in daily life and intrusive memories. Someone coping with crash-related trauma may have a harder time taking care of their family and running errands. Occasionally, their symptoms will impact their ability to do their job well.

There are tools for handling trauma

There are many steps that people can take to manage the emotional trauma of a car crash. Seeing a medical professional and arranging for a mental health evaluation are smart moves. People may also want to journal as a way to establish a trauma timeline that identifies elements of this incident and other experiences that prompt a trauma response. Regular sessions with a counselor or attending a support group can also be beneficial for those struggling to overcome fear, intrusive thoughts and risk aversion after a car crash. There is even some research that shows that taking the time to play a few rounds of Tetris could help someone process the trauma of a car crash and avoid the development of more serious PTSD symptoms. In theory, either car insurance coverage or a personal injury lawsuit can help someone cover the costs associated with mental trauma after a car crash. Connecting one's emotional struggles to a collision, and seeking medical and legal guidance accordingly, can help someone potentially obtain the support they need.

Exercise Your Rights: Victims of Credit Card Fraud Need to Know That the Truth in Lending Act Has Your Back.

With today's technology, it is very difficult to keep your credit and debit card accounts safe. If you have been a victim of credit card fraud and have fraudulent charges on your credit card, you should be aware of your rights as a consumer. There are many laws protecting consumers from fraudulent activities, today we will discuss the Truth in Lending Act.

Truth in Lending Act protects you in situations like this. Your personal liability for unauthorized credit card charges is limited to only $50.00. However, to take advantage of this law, you must write a letter to the furnisher within 60 days of the first bill containing the fraudulent charge.

If your credit card number is used fraudulently but the physical credit card was not used, you have no personal liability for fraudulent charges.

Fraudulent charges on your debit or ATM cards differ from credit card fraud. They are not as simple as credit cards in terms of unauthorized charges. The amount you are liable for depends upon how quickly you report the loss. If you report a lost or stolen debit card within two days, you are liable for a maximum of $50.00. However, if you do not report it within 60 days you may be liable for the entire fraudulent charges. The good news is that you are not liable for any fraudulent charges made after your debit or ATM card is reported stolen.

Always double-check all charges and vendors that are charging your cards. Act quickly. If you notice any suspicious activity in any of your bank account or credit card statements, report it as soon as possible and be aware of any requests for personal information. Under the Federal Privacy Act of 1974, furnishing your social security number is voluntary; so don't be bullied by aggressive sales tactics.

If your bank refuses to cover your losses in an event of a fraudulent activity, they may be breaking the law. They may also be breaking the law if they submit the fraudulent account for collections against you or report it negatively to the Credit Reporting Agencies.

If you suspect that your consumer rights have been violated, you should contact an experienced consumer protection attorney who will guide you in the right direction. Get in touch with KAASS Law for more information.

Easy nine step guide for Startup or small business owners interested in forming a corporation in California.

1. Choosing a Business Name for the Corporation and Check for Availability

Your business name may not be the same as, or deceptively similar to, other corporate names on file with the Secretary of State (limited exceptions apply). Additionally, the name may not contain the words "bank," "trust", "trustee," or related words. Although you are not required to do so, consider registering your business name as a federal and/or state trademark.

2. Recruit and/or Appoint a Director or Directors for the Corporation

Under California law, a corporation must have at least three directors, unless there are less than three shareholders. In that case, the number of directors may be equal to or greater than the number of shareholders. For example, if the corporation has only one shareholder, the number of directors may be one or two. If the corporation has two shareholders, the number of directors may be two (or three, which is the normal minimum). California does not set forth a minimum age or residency requirement for directors. Either the articles of incorporation or the corporation's bylaws must state the number of directors that will constitute the corporation's board of directors.

3. Prepare and File Articles of Incorporation with the Secretary of the State

The filing fee is $100. The Secretary of State website has a sample of articles of incorporations with instructions.

4. Create Corporation's Bylaws

California law requires a corporation to create bylaws. There is no set criteria for the content of bylaws, but they typically set forth internal rules and procedures for the corporation, touching on issues like the existence and responsibilities of corporate offices, the size of the board of directors and the manner and term of their election, how and when board and shareholder meetings will be held, who may call meetings, and how the board of directors will function. You are not required to file bylaws with the Secretary of State, but the corporation must keep a copy at its principal place a business.

5. File a Statement of Information with the Secretary of State.

The filing fee is $25. The Secretary of State's website has a simple, fill in the blank form for the Statement of Information. Instructions are included. It must be filled within 90 days of filing the articles of incorporation.

6. Determine What Tax and other Regulatory Obligations

Request an Employer Identification Number (EIN) from the IRS. There is no filing fee. If you will be paying at least $100 to an employee or employees in a quarter (this includes corporate officers), you are subject to California employment taxes and must register for a California employer account number within 15 days of paying that $100. You can register for employment taxes and get your account number online using the Employment Development Department's website. These taxes must be paid quarterly. Whenever you hire an employee in California, you must inform both the IRS and the State of California. The IRS details all of the necessary steps, including verifying work eligibility and withholding allowances certificates, on its page entitled Hiring Employees. You can find information for the state level in the California Employer's Guide and on the website for California's New Hire Reporting Program. If you have employees in California, you must carry workers' compensation insurance. There are other informational returns that you may have to file annually or semi-annually with both the IRS and the state. California imposes an $800 minimum franchise tax on corporation doing business in the state. This minimum tax is separate from any income, self-employment, or payroll tax. For many, this $800 minimum tax could be significant impediment to forming a corporation in California, especially if you have little or no expected income from your online publishing activities. California's current income tax rate for corporations is 8.84%.

7. Open a Bank Account for Your Business.

It is a good idea to keep business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your corporation. You will probably need a Tax ID number (EIN), a copy of the articles of incorporation, and a resolution identifying authorized signers if those names are not listed in the articles. Our lawyers in Glendale, Los Angeles, CA can provide you with any sort of legal assistance regarding business startups.

Motion to Quash Service of Summons in California

A Motion to Quash Service of Summons challenges Plaintiff's improper Service of Summons and Complaint. It further objects to the Court's personal jurisdiction upon Defendant. California Code of Civil Procedure Section 418.10. Details: Once the Motion to Quash is filed, Plaintiff has the burden to prove that service was legally sufficient. In the interim, the Defendant is under no legal obligation to respond to the defective summons until the Plaintiff demonstrates validity of service by evidence. (Bolkiah v. Superior Court (1999) 74 Cal.App.4th984, 991). However, in practice, this is dangerous because if Defendant fails to respond, even to a defective Summons and Complaint, Plaintiff may secure a Default Judgment. As a Defendant you never want to avoid responding to the Complaint and ultimately allow Plaintiff to secure a Default Judgment. A Default Judgment will allow a Plaintiff to come after your assets. Thus, if the Plaintiff has not served Defendant with a Summons and Complaint, a good practice for Defendant is to see an Attorney who may suggest filing a Motion to Quash Service of Summons.

More Legal Information About a Motion to Quash Service of Summons in California

Note: A Motion to Quash Service of Summons functions as a "special appearance," meaning that the alleged Defendant's do not submit to the Court's jurisdiction. Defendant submits to the Court's jurisdiction only when it files a general appearance (e.g. Answer, Demurrer, or such other pleadings in response to the Complaint) rather than a special appearance. Tip: Defendants must make supporting declaration(s) attached to the Motion to Quash. Defendants should provide detailed declaration(s), avoiding vague and broad allegations. Such declarations are carefully scrutinized by the Court when assessing the merits of you Motion to Quash. Time Limitations: Defendant must file a response to Plaintiff's Complaint within (30) days of being served with the Summons and Complaint. Pro Per Motion to Quash for $999.99: If you would like to file a Motion to Quash, give our office a call to get more information about how we can file a Motion to Quash.

EDIT 2016:

Effective January 1, 2016 Under California Section 430.41, before filing a demurrer, the demurring party must engage in a "meet and confer" process with the pleader to determine if an agreement can be reached that would resolve objections to the pleading. In simple terms, section 430.41, requires the parties to "meet and confer" prior to demurring to a complaint. Thus, if you disagree with any of the actions in the pleading, you must reach out to the other side whether via telephone or letter discussing the portions of the complaint that may be subject to demurrer. You would also have to file proper documentation with the court, known as "declaration" that you attempted to meet and confer with the opposing side under section 430.41. If you are unsure with the requirements, please feel free to give our litigation attorneys a call at {meta.phoneFormatted} for more information. Disclaimer: This content is intended for educational purposes only. For official advice please get in touch with our lawyers in Glendale, Los Angeles County, CA, in person or over the phone. KAASS Law is authorized to practice law in California. The above content is intended for California residents only. This content provides only general information which may or may not reflect current legal developments. KAASS Law expressly disclaims all liability in respect to actions taken or not taken based on any of the contents of this website. The above content DOES NOT create an attorney-client relationship. KAASS Law does not represent you unless you have expressly retained KAASS Law in person at the KAASS Law office.

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What is a judgment and what should you do if a court enters one against you? In the legal system, a judgment is a formal decision that is made by a court after a lawsuit. This judgment can vary depending on the type of lawsuit that is filed. For instance, in a criminal case, a judgment may include imprisonment and legal penalties. In civil matters, a court may provide monetary compensation as a form of remedy to the plaintiff. In some legal matters, a judgment ordered is not necessarily final and could potentially be appealed. There is always a possibility to remove a judgment from your record. A skilled attorney can help remove a judgment either by appealing the judgment or by requesting a release of judgment. An attorney can also help if there was a default judgment made, meaning the defendant or plaintiff did not attend the hearing and a judgment was made against them. The case will reopen and the defendant has a chance to be heard. If an appeal or release of judgment is successful, this will typically remove the judgment from one's record along with any other court orders that were made. This will also help clear up problems that may have arisen from the judgment; like a negative credit report. It is always important to consult a skilled attorney and to challenge any judgment that is being brought against you. This content is intended for educational purposes only. KAASS Law is authorized to practice law in California. The above content is intended for California residents only. This content provides only general information, which may or may not reflect current legal developments. KAASS Law expressly disclaims all liability in respect to actions taken or not taken based on any of the contents of this website. The above content DOES NOT create an attorney-client relationship. KAASS Law does not represent you unless you have expressly retained KAASS Law in person at the KAASS Law office.

Fair Isaac Corp. (FICO) is changing the way it calculates credit scores by revising its current credit-scoring system. The revisions could save U.S. Consumers billions of dollars when borrowing for mortgages or auto loans.

The two main criteria that are being closely examined, and are felt to have a significant impact on whether or not consumers receive loans, are overdue medical bills and payments that had been sent to collection agencies. In the past, situations like these can easily affect someone's credit score; quickly putting them in a "lower tier" for borrowing. Now, the revision plans on looking closer at these two situations and reducing the negative impact is has on consumer's credit scores.

Low credit scores are associated with situations such as overdue medical pills and payments sent to collections, but if the only criteria lenders are looking at is that credit score number, many consumers are going to be denied mortgage or auto loans. Also, even if these payments have been paid off, that consumers credit score is still going to be affected, just because that missed or overdue payment is on their credit history. With the new criteria set by FICO, lenders will now be examining those transactions and look beyond the actual credit score number, and more into if they have actually met their obligations.

With this new, extensive method of analyzing consumer credit reports, consumers will have an easier time when looking to borrow; especially since their scores can improve by about 25 points. Although this revision will put consumers with previously poor credit scores in a better position, it does not mean the difference between being approved or not; however, it is more so the terms on which you are approved.

This revision to the nation's dominant credit-report system may improve the borrowing-position of millions of U.S. consumers. Although it will be very beneficial and save consumers billions of dollars, it may take a while for lenders to transition to this system to make the borrowing process easier. The wait may be long, but worthwhile in the long run.

This content is intended for educational purposes only.

Our lawyers in Glendale, Los Angeles, California, at KAASS Law are authorized to practice law in California. The above content is intended for California residents only.

These are 5 things NOT to do after an auto accident. Automobile accidents are no fun. Everything from dealing with the insurance companies to trying to recover from injuries can be stressful. Although they can be a pain in the neck, auto accidents are inevitable. Knowing what to do after an accident can help minimize the stress. However, it is also crucial to know what NOT to do.

1. Do not leave the scene of the accident

It is important to exchange information with all the parties involved. Leaving the scene will result in unneeded stress and can get you in trouble with the authorities.

2. Do not get angry or upset

Accidents happen, and there is no need to get overly upset about it. Doing so not only stresses you out at the moment, but can also play a role in future stress. When people get upset, they tend to say or do things they do not mean subconsciously. Something as simple as saying, "I'm so sorry, that was my bad," or "sorry, I was not paying attention," can really hurt your case and possibly make you liable for the accident.

3. Do not forget to call the police

Having the police present to take a report helps insure that you will receive all the information you need.

4. Do not refuse to go see a doctor

You may not experience pain at the moment, but often times, pain may gradually appear after some time. Seeing a doctor can help insure that you will not suffer from pain in the future.

5. Do not talk to the insurance company or the other driver's attorney

It is important to consult your own attorney before giving a statement about the accident. An attorney can help make sure you are not wrongfully blamed for an accident that you were not liable for.