https://ttlc.intuit.com/community/taxes/discussion/law-suit/01/3104022#M1138324 <P>I received a settlement from a car accident this year, is this taxable income?</P> Tue, 24 Feb 2026 07:35:26 GMT jordanjmj16 2026-02-24T07:35:26Z https://ttlc.intuit.com/community/taxes/discussion/law-suit/01/3104022#M1138324 <P>I received a settlement from a car accident this year, is this taxable income?</P> Tue, 24 Feb 2026 07:35:26 GMT https://ttlc.intuit.com/community/taxes/discussion/law-suit/01/3104022#M1138324 jordanjmj16 2026-02-24T07:35:26Z https://ttlc.intuit.com/community/taxes/discussion/re-law-suit/01/3104097#M1138325 <P>Lawsuit settlements from car accidents are generally not treated as taxable income.&nbsp; The IRS does not treat personal injury settlements, including those from accidents in a car, as income that is taxable. However, if the settlement includes payments that include compensation for lost wages or punitive damages, those may be subject to taxation.</P> <P>&nbsp;</P> <P>I doubt it was compensation for lost wages or punitive damages, it was probably just personal injury settlements, which are not taxable.</P> <P>&nbsp;</P> <P>Thank you,</P> <P>John</P> <P>CPA</P> Wed, 25 Oct 2023 18:39:27 GMT https://ttlc.intuit.com/community/taxes/discussion/re-law-suit/01/3104097#M1138325 Anonymous 2023-10-25T18:39:27Z