No, you don't generally need to report the refund from BetterHelp you got after a lawsuit if it's from money you already paid.
Settlement Payment vs. Settlement Refund:
- Settlement Refund: Like your refund, it's generally not taxable since if it is a reimbursement
- Settlement Payment: Compensation for damages could be taxable depending on the nature of the settlement
For more details, check out the IRS guidelines on settlements and judgments.
AMICUS also provides a settlement tax calculator
