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holdertax
New Member

Do i have to report money from a medical lawsuit I received?

 
1 Reply
DawnC0
Intuit Alumni

Do i have to report money from a medical lawsuit I received?

It depends.  A settlement payment may consist of multiple elements that have been allocated by the parties. For example, an agreement may include allocations to back pay, emotional distress, and attorneys’ fees. Generally, the IRS will not disturb an allocation if it is consistent with the substance of the settled claims.  Please see the linked 2-page article that explains the taxability of lawsuit settlements from the IRS. IRS - Settlements

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