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Is a settlement check taxable income?

Posted by bouncingpig (My Page) on
Tue, Jun 15, 04 at 11:18

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.

Brenda


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RE: Is a settlement check taxable income?

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.


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