Comment
Expert Alumni
Expert Alumni

Settlement payments for physical illness is not taxable.  Unless, you took a medical expense deduction in a previous tax year, there would be no need to report your settlement.

 

If you did itemize your expenses, then you would only report an amount equal to your itemized medical expenses in previous years. You would report this amount as Miscellaneous Income by clicking the following:

  • Federal
  • Income
  • Scroll down and click show more next to less common income
  • Start next to Miscellaneous Income
  • Walk through the steps to enter your income