Declaring damage compensation in the tax return? 6 questions

You have received an amount in compensation in the past year, or perhaps before that. Suddenly you receive a call for tax returns in the mail. You weren’t expecting that! How do you deal with this? Do you have to declare the amount that you have received in compensation in the tax return? We answer six frequently asked questions for you!

6 questions about compensation and tax returns

You have sustained a personal injury and have received damage compensation for it. That’s wonderful! It allows you to focus on your recovery without worrying about the costs involved. But you may be wondering what the compensation will mean for your taxes.

1. Do I have to declare the compensation received as taxable income?

No, you don’t have to. Here’s the thing: the amount you receive in compensation is not income. It is a reimbursement of costs incurred and can therefore not be considered profit. So no tax is charged on this.

And what about compensation for pain and suffering? This is also a compensation and is not counted as profit. So you do not have to pay tax on this.

2. Are there any damages that I may have to pay tax on?

While you were recovering from the accident that left you injured, you may not have been able to work for a while. And maybe you are still not working (at full capacity). You should have received compensation for this loss of income. Technically, this is your income and you might have to pay income tax on it.

• However, this compensation, like all other compensation, is paid net.
• This means that you do not have to declare this to the tax authorities and do not have to pay tax on it.
• Should any problems arise, you should contact your representative or the insurer that paid out the damage to you.
• After all, you received this compensation net, so it would not be reasonable if the tax authorities could take a chunk out of this compensation.

3. Where do I declare the compensation in my tax return?

You report all of your assets in Box 3, so this includes the amount you received in compensation. In Box 1, your income, you do not have to enter the compensation!

4. What if the tax authorities still tax my compensation?

The tax authorities may still levy tax on the amount you receive in compensation, especially if it concerns a temporary loss of income. However, any good representative takes this into account when applying for compensation.

How?

• By requesting a tax guarantee.
• As a victim, you then retain the right to contact the counterparty’s insurer again if your compensation is still taxed.
• The latter is then obliged to either contest or pay the levy.

5. What if the accident took place (a long time) in the past?

Perhaps the negotiations on the compensation took a very long time, or for whatever reason, you waited a while before holding the other party liable. If the accident that caused you personal injury happened in the past, you may be wondering what year the compensation belongs to. After all, it may be compensation for expenses that were incurred a long time ago.

Fortunately, you do not have to declare the compensation in your tax return. Thus, it does not matter in which year the accident took place.

6. What if my assets exceed the exemption limit as a result of the payout?

The amount you receive in compensation is net. However, if your capital exceeds the exemption limit as a result of this compensation, then you do have to pay wealth tax on this. After all, you must declare to the tax authorities how much money you have in your (savings) account.

Compensation without unexpected surprises

When you have a good representative, he or she will take the above issues into account. He or she will always ensure that you receive a tax guarantee with your compensation. Your representative also ensures that any consequences of the amount for your assets and wealth tax are included in the compensation calculation.

The lawyers of Juridisch Bureau Letselschade & Gezondheidsrecht have many years of experience with cases like yours, and will always consider the above matters when calculating your compensation. This way you will never be faced with unexpected surprises! Click on paying taxes on compensation for more information.

Swift, decisive, and expert

Having your case taken on by Juridisch Bureau Letselschade & Gezondheidsrecht means a swift, decisive, and expert settlement of your damages. And it is always free of charge for you! If you contact us now, you will be contacted on the very same day. Even in the evenings and on weekends.

Nationwide bite protocol after a dog bite

https://old.juridischbureauletselschade.nl/landelijk-bijtprotocol-hondenbeet/

Recently, there seems to be an increase in the number of biting incidents. Unfortunately, there are no hard figures. Dog bites are hardly registered. And what should happen to the four-legged friend after the biting incident? There is no clarity about that either. Each municipality has its own bite protocol. A nationwide bite protocol could change this. And that is certainly not an unnecessary luxury. Dog bites can cause serious injuries, both physical and psychological. That should certainly not be underestimated.

Serious injury after biting incidents

A dog bite should always be examined by a medical specialist. Superficial and deep wounds. Some wounds may not appear serious, but they can become very serious. Dogs can transmit many bacteria. Bacteria that can lead to serious infections. Sometimes even resulting in the amputation of bitten limbs.

Physical injury following a dog bite:

• Bite wounds
• Nerve damage
• Scars
• Infection
• Rabies
• Amputation of limb
• Death
• Mutilation

Tip: It is always wise to ask if a tetanus shot is necessary. This vaccination protects you against rabies. A disease that can be fatal.

Psychological damage after a dog bite

It is also possible that a victim suffers psychological damage:

• Fear of dogs
• Not feeling safe on the street
• Trauma to the event

Not only the victim but bystanders can also be traumatized by a dog attack.

Compensation for biting incidents

The dog is a beloved companion animal. Almost two million dogs live in the Netherlands. Most dogs outside the shelter have an owner. This owner is responsible for the well-being and behavior of the dog.

Victims of dog bites are always entitled to compensation. Compensation for material and immaterial damage. Who can be held liable for this? The owner of the dog is always fully liable. You can find this in Article 6:179 of the Dutch Civil Code:

“The owner of an animal is liable for the damage caused by the animal, unless liability under the previous section would have been absent if he had had control over the behavior of the animal that caused the damage.”

But what about if my dog ​​has been bitten by another dog, you may be thinking. Then the medical expenses for your dog must also be reimbursed. Is your dog bitten by another dog with fatal consequences? Then the other party must also reimburse the cremation costs. Would you like to know more about the liability of the owner? Then go to the page Bitten by a dog: claim your compensation.

Recent biting incidents

This week it happened again in Nieuw-Buinen in Drenthe. On Tuesday afternoon, a 3-year-old boy was bitten by four rottweilers. Unsuspectingly, the toddler was playing in the garden of the neighbor (also the owner). The rottweilers were behind a fence but jumped over it. The toddler was immediately attacked. The boy was seriously injured and taken to hospital by ambulance.

A nightmare for the toddler and the parents. But the neighborhood children present and the owner were also shocked. The gory scene is etched in their memory. The owner had six dogs. The four rottweilers who attacked the boy will be put down. The animal police, the municipality, and also the owner himself unanimously agreed on this. The other two dogs are subjected to a behavioral examination.

Other incidents in the month of August:

• Amsterdam: 6-year-old girl mauled resulting in serious injury. The aggressive neighbor dog has been seized by the police.
• Santpoort-Noord: 3 people were attacked at a village festival. The dog was shot and killed by police on the spot.
• Hoorn: 13-year-old girl on a bicycle attacked by a dog. The owner was arrested for incitement to bite. Dogs seized by the police.

Aggressive police dog

Earlier this year, the forearm of one of our clients was completely destroyed by a police dog. (CAUTION: link contains shocking photo). And late last year, another JBL&G client was mauled by a neighbor dog. But those aren’t the only biting incidents. Our lawyers handle cases of victims of dog bites on a daily basis.

Who monitors biting incidents?

There seems to be a worrying increase in bite incidents in recent years. Animal organizations are receiving more and more reports of dog bites. But government agencies are also expressing their concerns about the increase in biting incidents. They all advocate for a central registration point:

• Animal police
• Dutch Animal Protection Foundation
• Royal Dog Protection
• Dutch Federation of Animal Shelter Organizations
• Municipalities

Because who is now monitoring the biting incidents? And how these are dealt with? In recent years, the government has placed these tasks in the hands of the municipality. This has led to each municipality having its own bite protocol. Rules may differ on:

• Leash obligation (also in off-leash areas)
• Mandatory training
• Behavioral examination
• Muzzle obligation (after 1, 2, or even after 5 incidents)
• Putting down

However, this can cause confusion and dangerous situations.

Muzzle obligation after biting incident

A muzzle obligation is restricted to the municipality. So it is possible that an owner who has been imposed a muzzle obligation for his aggressive dog:

• has to walk with a muzzle in Amsterdam
• can walk without a muzzle in Utrecht

Something that obviously should not be possible.

How many biting incidents per municipality?

The question: how often do biting incidents take place? Cannot be answered. The animal organizations suspect that not all dog bites are reported. There is little to no registration at all. This makes it impossible to determine the number of biting incidents per year.

There are only two municipalities that strictly register: Zwolle and Apeldoorn. These registrations show that there is an upward trend in the number of dog bites. The animal and government organizations therefore argued for:

• Conditional ownership
• Nationwide bite protocol

Decrease in biting incidents through conditional ownership?

The cry for help that the Dog Protection Service sent to the Member of Parliament on September 1, 2015, has finally been heard. A study is currently being conducted into the usefulness of conditional holdership. State Secretary Van Dam has ordered this. Various authorities have argued in favor of this type of ownership for some time. Dogs that were originally bred to fight can no longer be purchased willy-nilly.

Conditions for obtaining ownership of such dogs:

• Owner must not have a criminal record
• Future owner must first follow a course
• Ownership permit
• Minimum age of 18 years
• Mandatory third-party insurance
• Mandatory certified dog training school for owner and dog

JBL&G argues in favor of mandatory third-party liability insurance for dog owner

Currently, third-party liability insurance is not mandatory. This can have major consequences for the victim. That is why JBL&G has previously argued in favor of mandatory third-party liability insurance for dog owners.

Many people just buy a dog willy-nilly. Without thinking. A dog needs sufficient exercise, proper upbringing, and care. A frustrated dog can cause problems. And that’s a shame for the reputation of our four-legged friends. Conditional ownership can be a good step in clearing the name of ‘dangerous’ dogs.

Nationwide bite protocol for biting incidents

A nationwide bite protocol could change the current crooked rules, where a muzzle can be required in one municipality, but not the other. If the four-legged friend gets a muzzle obligation, then that will apply in all municipalities.

State Secretary Van Dam announced that this protocol will be introduced after the summer. The nationwide bite protocol will then uphold the same standards in terms of rules and obligations. In addition, several animal organizations are convinced that this will also promote the registration of bite incidents.

The Dutch Federation of Animal Shelter Organizations hopes that with the nationwide bite protocol:

• All biting incidents will be registered
• Rules of conduct are being introduced for shelters
• Muzzle obligation will be registered in chip databases

An interesting idea from the Dutch Federation of Animal Shelter Organizations is the claim form for biting incidents. With a systematic registration of biting incidents, it can be assessed:

• How often these incidents occur
• Why these incidents occur

Victim should not have to pay for the damage after a dog bite

JBL&G hopes that the nationwide bite protocol will be implemented and that this will bring about a long-term decrease in dog bites. And of course, JBL&G hopes that it will become mandatory for all dog owners to take out third-party liability insurance. So that the victim of the dog bite at least does not pay for the personal injury themselves. Because when the owner of the dog turns out to be uninsured, the victim is often left empty-handed.

Calculate your personal injury immediately