Do I report a refund I got from BetterHelp because of a lawsuit they were in with the FTC? If there a difference between a settlement payment and a settlement refund?

[SabrinaD2]

No, you don't generally need to report the refund from BetterHelp you got after a lawsuit if it's from money you already paid.

Settlement Payment vs. Settlement Refund:

• Settlement Refund: Like your refund, it's generally not taxable since if it is a reimbursement
• Settlement Payment: Compensation for damages could be taxable depending on the nature of the settlement

For more details, check out the IRS guidelines on settlements and judgments.

AMICUS also provides a settlement tax calculator