SharonD007
Employee Tax Expert

Get your taxes done using TurboTax

Non-injury settlements are considered other taxable income. You should receive a Form 1099-MISC if your settlement is taxable. You will be taxed on the income based on the tax bracket that you fall in and the federal income tax rates. 

 

Refer to the TurboTax article Are legal settlements taxable? for more information.

 

For instructions to enter your settlement, review the TurboTax help article Where do I enter an award from a taxable legal settlement?

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