Are taxes withheld on a car accident settlement?

Yes this could be possible depending on what the settlement amounts would be made for.

AnswerNOPE, can't touch them. IRS, Nobody can touch any money you get compensated for personal INJURY(I thought that was your question) after you pay your medical bills and 30-40% attorney fees, the rest is yours= PERIOD.

No "child support taken out" Back taxes /IRS- Nada.............Have a great day!!,

AnswerIn the United States, Insurance claim settlements (such as life insurance proceeds, personal injuries or property loss) are typically not considered income and are therefore not taxable. Loss settlements of these types that result from an insurance claim are categorized legally as "indemnification" which is simply compensation for your loss. In simpler terms, there is typically no profit or gain involved and therefore no taxable income.

As in many things though there is however a grey area. When compensation is for loss of future earnings or wages. Since the future wages would have been taxable when earned. One could construe some portion of such a settlement as taxable. A consultation with your attorney would be advised in such a situation.