CathiM
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This is from <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p4345.pdf:">https://www.irs.gov/pub/irs-pdf/p4345.pdf:</a> Emotional distress or mental anguish
• The proceeds you receive for emotional distress or mental anguish originating from a personal physical injury or physical sickness are treated the same as proceeds received for Personal physical injuries or physical sickness above. However, the attorney has issued it to you as taxable in Box 3.