KochuK
Expert Alumni

Get your taxes done using TurboTax

Hi Dave 991,

 

Yes, you are correct that, in general, proceeds received for physical injuries or physical illness are tax free; Other awards are taxable.

 

You should receive a Form 1099-Misc reporting any taxable amount for tax year 2022. When entering 1099 Misc into TurboTax, if you answer entry questions correctly "The money was from a lawsuit settlement", "It was not back wages,  the amount will flow to "Other Income."

 

Hope the above helps.

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