Paying taxes on settlement ??

#1 09-13-2002, 02:08 AM

What is the name of your state? Louisiana

I recently received a settlement and want to know if it is it required to pay taxes on the awarded amount at the end of the year. It seem I should not since after my decreased settlement value agreed on and attorney fees barely cover the medical expense I need to pay back.

Thanks in advance for your help.

#2 09-13-2002, 02:46 PM

As I understand it, there are no federal taxes due on personal injury settlements. There may be state taxes due on this type of settlement. Try ths web site or go to the root site at [url]www.irs.gov[/url] and search for personal injury settlement or similar search term:

[url]http://www.irs.gov/advocate/display/0,,i1%3D55%26genericId%3D7050,00.html#Chap2[/url]

Hope this helps a little <:0)

racer72 · #3 09-13-2002, 03:57 PM

Generally, the only insurance settlements that are taxable are those for lost income.