For Pennsylvania (PA) it depends on the type of settlement: Delay damages received in connection with a court judgment or settlement is taxable compensation. Federal-taxable punitive damages received for personal physical injury or physical sickness, whether received by suit or by settlement is not taxable compensation.
Check your PA return for this income and watch for a place to add it under compensation. Since it is taxable for federal it should show up on the PA return.
@taylordc75
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