https://ttlc.intuit.com/community/taxes/discussion/lawsuit-settlement/01/2792216#M1029854 <P>I received a settlement from a malpractice lawsuit. Will I owe taxes on it?</P> Tue, 10 Mar 2026 06:53:32 GMT B1003 2026-03-10T06:53:32Z https://ttlc.intuit.com/community/taxes/discussion/lawsuit-settlement/01/2792216#M1029854 <P>I received a settlement from a malpractice lawsuit. Will I owe taxes on it?</P> Tue, 10 Mar 2026 06:53:32 GMT https://ttlc.intuit.com/community/taxes/discussion/lawsuit-settlement/01/2792216#M1029854 B1003 2026-03-10T06:53:32Z https://ttlc.intuit.com/community/taxes/discussion/re-lawsuit-settlement/01/2792246#M1029855 <P><SPAN>According to the IRS, payments for medical malpractice are classified as “personal physical injuries” settlements or compensatory damages. The portion of your award that compensates you or reimburses you for medical expenses and losses you suffered from the injury or sickness is&nbsp;</SPAN><STRONG>non-taxable</STRONG><SPAN>.</SPAN></P> <P>&nbsp;</P> <P><SPAN>However,&nbsp;<STRONG>Punitive damages are taxable</STRONG>&nbsp;and should be reported as “Other Income” on line 8z of Form 1040, Schedule 1, even if the punitive damages were received in a settlement for personal physical injuries or physical sickness.</SPAN></P> <P>&nbsp;</P> <P><SPAN>Long answer - short.&nbsp; Please review to litigation settlement and award paperwork.</SPAN></P> Wed, 16 Nov 2022 20:04:03 GMT https://ttlc.intuit.com/community/taxes/discussion/re-lawsuit-settlement/01/2792246#M1029855 R-SchuleCPA 2022-11-16T20:04:03Z