My son is a student and goes to college at WA. He was part of a Class Action Personal Injury Lawsuit against JUUL and won a settlement of $52K, and after deduction for expenses and attorney fees he was given a cheque of $29K. We did NOT receive any 1099 form from JUUL or the law firm for this. This is specifically considered “ADDICTION” injury.
1. Would this personal injury settlement which is “ADDICTION” injury, be considered taxable?
2. Additionally, in case this is taxable, what is considered as taxable income - $52K or $29K?
