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Do I need to claim my personal injury settlement as income?

 
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Patrice
New Member

Do I need to claim my personal injury settlement as income?

No, personal injury settlements are not considered income and they are not taxable.

Neither the federal government (the IRS), nor your state, can tax you on the settlement or verdict proceeds in most personal injury claims. Federal tax law, for one, excludes damages received as a result of personal physical injuries or physical sickness from a taxpayer's gross income.

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1 Reply
Patrice
New Member

Do I need to claim my personal injury settlement as income?

No, personal injury settlements are not considered income and they are not taxable.

Neither the federal government (the IRS), nor your state, can tax you on the settlement or verdict proceeds in most personal injury claims. Federal tax law, for one, excludes damages received as a result of personal physical injuries or physical sickness from a taxpayer's gross income.

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