Yes it is true. If you received an award through law suit settlement and it was for medical reasons.
Physical injury or sickness settlements (dog bites, mesothelioma, etc. or cancer) are nontaxable and don't need to be reported unless you deducted medical expenses related to the injury on a previous tax return and you received a tax benefit from the deduction. In that case, report the medical expenses related to the incident as miscellaneous (other) income.
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