Is a settlement check taxable income?

bouncingpigJune 15, 2004

We just settled a long lawsuit for a car wreck I was in 4 years ago. We received the payment yesterday. Anyway, I am not certain as to whether settlement checks are taxable. It is certainly not a gift and is supposed to be for not only pain and suffering but also to cover future medical expenses. I didn't think it was taxable, but DH thinks it may be. Anyone know? Thanks.


Thank you for reporting this comment. Undo

Generally not, though punitive judgements are taxable. This is really something to ask your attorney though, as we don't know the exact details of your settlement, and your own state tax code may assess judgements.

    Bookmark   June 15, 2004 at 12:18PM
Sign Up to comment
More Discussions
refinancing a home
Just learned my interest is 5.25 on our home morgage....
Is a lien only for money owed or.........
My Home Owners Association has rules of course and...
Family Banking Concept, anyone heard of it?
I did a search here and did not see any similiar thread....
anyone had trouble getting an Amex card accepted?
I have an Amex card with a very good cashback program,...
davidrt28 (zone 7)
What is the fair ratio?
The living expense is paid between the couple (Husband...
Sponsored Products
The New Yorker On Duty Beach Towel
Grandin Road
Courtly Check Black Sisal Rug 8' x 10' - BLACK
$695.00 | Horchow
Checked European Sham
$150.00 | Horchow
Boston Celtic Red Auerbach Collage
$499.00 | FRONTGATE
Traditional Concealed 2 Outlet Triple Thermostatic Shower Valve
Hudson Reed
Thermostatic Shower System, Apron Head, Brass Handset & Body Jets
Hudson Reed
1920 check wool throw - camel/natural
Origin Crafts
Campania Cast Stone Sphere Garden Terrace Outdoor Fountain - FT-159-AL
$179.99 | Hayneedle
© 2015 Houzz Inc. Houzz® The new way to design your home™