George,
Thank you for your reply. I do realize that this is a fairly complex situation that my accountant struggled with so that is why I thought about reaching out. My accountant and I reviewed publication 4345 which I think what we discussed seems similar to your answer. He feels fairly confident that the part that is reimbursed medical expenses are not taxable, especially since I never deducted them in previous years, but the emotional distress damages are a bit more complicated. He said he would do some more research, and I am trying to as well.
Thank you for the recommendation of where to look in TurboTax, and thank you for your help!
