RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Tax Tips For Personal Injury Settlements

January 24, 2017 1:18 am

Like it or not, tax season is just around the bend. If you received a personal injury settlement or award this past year, it is important that you understand all the tax ramifications before filing your tax returns. Read the following helpful tips from Zanes Law.

Money for Pain and Suffering

The best way to look at the money that you are being paid for "pain and suffering" is that this is the actual money being paid to you for your physical injury.  Currently, according to the IRS compensation that a person is paid for physical injury is federal-income-tax-free. Compensation for emotional distress is also tax-free because it is considered to be part of your physical/personal injury.

Money for Medical Expenses

Money paid to you in order to cover your medical expenses is tax-free too. However, if you claim a tax deduction for accident related medical expenses and you are later reimbursed for those same medical expenses as part of your case, you must "recapture" that amount and will have to pay tax on it because you previously benefited from the deduction that you took.  If your settlement or award does not specifically allocate an amount for medical expenses and you previously took a tax deduction for your accident related medical expenses, the award or settlement is automatically considered to be a reimbursement for such expenses up to the amount of those expenses.  So the key here is the tax deduction.

Reimbursement for Lost Wages

Oddly enough, amounts paid for lost wages are federal-income-tax-free, even though the wages would have been taxable if you had received them.

What About Attorney's Fees?

You cannot deduct attorney fees incurred to collect a tax-free award or settlement for physical injury or sickness. In other words, no deductions are allowed for fees in order to collect tax-free compensation.

Source: http://zaneslaw.com/  

Published with permission from RISMedia.


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Brush up on Your Winter HVAC Performance Tips

January 24, 2017 1:18 am

The winter is the worst time to have your HVAC system fail. To keep everything running smoothly, follow the following five tips courtesy of Winstar Home Services.

Clean your home
Your home is a reflection of your ductwork, as dirt and debris in your air filter comes from dirt and debris in your home. Removing all dust, dirt and debris will help your air filters work more efficiently.

Change your air filter
A dirty filter can slow down airflow, causing your system to work harder to keep your home warm (which also means wasted energy and a higher utility bill). A clean filter will prevent dirt and debris from building up in the system, which helps limit expensive maintenance and avoid early system failure

Clean your outdoor HVAC unit
Take a few minutes to inspect the area around your outdoor unit. Leaves, shrubs and grass cuttings can build up on the outside of your HVAC unit, decreasing the system capacity and reducing airflow.

As a general rule, keep trees, shrubs and other outdoor elements at least two feet away from the unit so it is free to pull in air.

Seal any gaps in your home and ductwork
Inspect both the interior and exterior of your home's windows, air ducts, and exterior doors for any cracks or gaps and seal any exposures. Even a small gap can lead to warm air escaping your home, which translates into more wasted energy.

Examine your thermostat
Check to make sure your thermostat is working properly and keeping your home at the right temperature. If you still have an older mechanical thermostat, it is recommended to upgrade to digital, programmable model, as switching to a programmable thermostat can save you upwards of $200 a year.

Some new models even allow for remote operation via a cell phone, which are perfect for extremely low temperature days, since you can save energy by setting the temperature lower during the day (when your family is out of the home) and then changing it to a higher temperature before heading home.

Source: Winstar Home Services

Published with permission from RISMedia.


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