KochuK
Employee Tax Expert

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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