When you receive a settlement from ICBC, even if it is partly for past wage loss, you do not have to pay any taxes. If you are receiving ICBC Part 7 disability benefits, you do not have to pay taxes on that amount either. Why not? Firstly, when ICBC calculates any lost wages attributable to the car accident they reduce the amount owing based on the taxes you would have paid if you had received that income. In other words, they will reduce the amount owing in wages by your appropriate tax bracket. This is done before the settlement of the claim…
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Meet some of our personal injury lawyers as they explain the process in clear language and answer some commonly asked questions.
Motor Vehicle Accident and Injury Claims
Lindsay Kenney LLP – Vancouver & Langley Offices
This article is intended to be an overview of the law and is for informational purposes only. Readers are cautioned that this article does not constitute legal or professional advice and should not be relied on as such. Rather, readers should obtain specific legal advice in relation to the issues they are facing.