The key question to ask is: "What was the settlement intended to replace?"
- If this was payment (like wages) for the care of the disabled person, it is taxable.
- If it was reimbursement of expenses, it would not be.
If this was compensation for wages, please see the TurboTax article Family Caregivers and Self-Employment Tax for some tax guidelines.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
