I am a plaintiff in a class action lawsuit against a large utility company. The courts have recently ruled against the utility company and all plaintiffs will be receiving settlement checks. The settlement will separate the proceeds between Personal Injury and Economic Injury. My understanding is that Personal Injury awards are not taxable…but that Economic Injury awards are. Is this true? Do I need to report the proceeds of this settlement check on my personal tax return and if so, where? Thank you.
