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taxes on settelments?

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janetw30

Junior Member
What is the name of your state? texas

do you have to pay taxes on money received from a wrongful death suit? or personal injury?
 


LdiJ

LdiJ

Senior Member
janetw30 said:
What is the name of your state? texas

do you have to pay taxes on money received from a wrongful death suit? or personal injury?
Click to expand...
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.
 
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