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It depends on what the insurance company paid out. As Tax Expert Alumni @AlanT222 said, “The hard part is being able to separate your settlement into different award amounts. Most settlements are a lump sum amount that includes pain and suffering, medical expenses, and lost wages.”
Do you have some type of breakout? Perhaps a letter from your insurance company? The attorney who handled your case may be able to help. There should be a court order and/or settlement agreement. Part of the money may be for attorney’s fees.
We’d have to know more to answer your question.
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February 21, 2023
4:41 PM