I’d be curious to know what you found out from your attorney. I’m in the very same situation and I’m getting conflicting opinions. From everything I’ve read and from what I see in IRS article 104 (2) (a), it seems that wrongful death awards settled out of court are compensatory damages and not punitive. Therefore they are not subject to taxes and can’t be considered as part of your income. I don’t believe you should receive a 1099. If you don’t mind would you share what your attorney told you?
