topic Will i have to pay taxes on settlement in Retirement tax questions

Will i have to pay taxes on settlement

Smokey5816 — Tue, 24 Feb 2026 06:52:18 GMT

I retired at 55 and was guaranteed insurance from my company till I received Medicare at 65. At 60 years old. The company I worked for dropped all retired people insurance. I bought insurance for myself through Obama Care. Are union filed a grievance against the company and won the case. I'm now on Medicare. There is a small cash settlement for each person who lost there company insurance. Will I have to pay income tax on that cash settlement???

Re: Will i have to pay taxes on settlement

KarenL4 — Wed, 26 Jul 2023 17:14:05 GMT

Hi,

The general rule is that lawsuit settlements are taxable, except in cases that involve an actual, physical injury (“observable bodily harm”) or illness that you suffered. In other words: personal injury settlements usually aren't taxable, while other types of settlements usually are.

Here's an article that also helps!

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Regards,

Karen