Deductions & credits

Just to clarify, this is the text of the settlement in its entirety. I am trying to sort out if any of the portion of the amount is taxable income. Thanks for the help!

FULL RELEASE OF ALL CLAIMS WITH INDEMNITY

(INCURRED OPEN MEDICAL AGREEMENT)

KNOW ALL BY THESE PRESENTS THAT for and in consideration of the payment of $10,100.00 (Ten Thousand One Hundred Eighty Five Dollars And Fifty Cents), the receipt and sufficiency of which is hereby acknowledged, <First and Last Name>, the Undersigned, does for himself/herself/themselves and for his/her/their heirs, executors, administrators, successors, assigns, and any and all other persons, firms, employers, corporations, associations, or partnerships, forever release, acquit and discharge John Smith, and his/her/their agents, successors, heirs, executors, administrators, and assigns, from any and all claims, causes of action, actions, rights, demands, bodily injuries, personal injuries, damages including but not limited to any and all medical expenses wherever incurred and loss of wages and/or income, loss of consortium, loss of any services, other costs and expenses, and any other compensation of any kind, which the undersigned has incurred on account of or which are in any way related to an accident that occurred on or about March 30, 2022, at <insert accident location>.

In further consideration, the Released Party(ies) agree(s) to pay up to $20,500.00 (Twenty Thousand Dollars) for any reasonable and necessary medical/dental expense(s) already incurred for examination, diagnosis, and/or treatment for the Undersigned, but for which medical/dental bills have not yet been submitted for review.

The Undersigned acknowledges and agrees that except for this agreement to pay for these specific expenses referred to above in this paragraph, the Released Party(ies) has no obligation to pay for any other item, or any other general damages or other damage of any nature whatsoever, emotional distress, cost or expense of any kind which the Undersigned incurs at any time after this Release is signed.

The Undersigned further acknowledges and agrees that the Released Party(ies) will only pay for reasonable and necessary medical and/or dental expenses, and only if the examination, diagnosis, and/or treatment is for an injury that was caused by the accident referred to above.

The Undersigned acknowledges and declares that his/her injuries caused by the accident identified above are or may be permanent, and that the extent of recovery from those injuries is/may be uncertain and indefinite. With that acknowledgement and understanding, the Undersigned declares and represents that he/she/they is(are) entering into this Release agreement wholly in reliance on his/her/their judgment, belief and knowledge of the nature, extent, effect, and duration of his/her injuries, and liability for those injuries.

The Undersigned further acknowledges and represents that he/she/they is(are) entering into this Release agreement without reliance on any statement or representation by any person(s) being released, by any of his/her/their/its representative(s), or by any physician or surgeon or other medical personnel employed by them.

It is understood and agreed that this settlement is a full and final compromise of a doubtful and disputed claim, both as to questions of liability and as to the nature and extent of the injury(ies) and damage(s) caused by the accident referred to above. The Undersigned acknowledges and agrees that neither this Release, nor any payment pursuant thereto, shall be construed as an admission of liability, such being denied.

In consideration of the payments indicated above, the Undersigned further agrees to fully defend and indemnify the Released Party(ies), and to hold him/her/them harmless from any and all claims, causes of action, actions, liens, liability, claims or actions for subrogation, and any related expenses, arising out of or in any way related to the injuries and damages caused by the accident referred to above. The Undersigned acknowledges and agrees that in order to hold the Released Party(ies) harmless, he/she/they will if necessary satisfy any judgment against

the Released Party(ies) arising out of or in any way related to the injuries and damages caused by the accident referred to above.

FURTHER, as a condition of the settlement and release the Undersigned for himself/herself/themselves represents and warrants that as of the date of this signing, the Undersigned for himself/herself/themselves has provided the Released Party's (ies') insurer <Insurance Company Name>  ("Insurer") all information known to the undersigned about any and all Medicare rights to recovery as of this date. The Undersigned for himself/

herself/themselves agrees to reimburse, indemnify and hold harmless each of the persons, firms, corporations released hereunder and their Insurer, including their agents and assigns, with respect to any and all known or unknown Medicare rights to recovery, related to the Subject Accident, for which the federal government may seek repayment as well as any fine or penalty the federal government may seek resulting from the sufficiency and or accuracy of the information the Undersigned has provided to the Insurer regarding Medicare rights to

recovery known as of this date.

The Undersigned further declares and represents that no promise, inducement or agreement not herein expressed has been made to the Undersigned, that this Release contains the entire agreement between the parties hereto, and that the terms of this Release agreement are contractual and not a mere recital.