FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018. By continuing to use this site, you are consenting to our Terms of Service and use of cookies.
The simplistic answer is that any part of the settlement that replaces taxable income (ie wages) or punitive damages are taxable. Anything that pays for medical bills or funeral costs or for ongoing care is not.
Any settlement should be run by a tax professional.
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.