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New Member
posted Apr 21, 2022 3:12:04 PM

If i received a settlement check may i use dat to file

0 3 361
3 Replies
Level 15
Apr 21, 2022 3:16:06 PM

A settlement check for what ?    Did you get any kind of tax reporting form for this like a 1099 ? 

New Member
Apr 21, 2022 3:19:52 PM

from a  work injury lawsuit nd no wasnt given anyform other than just 25500

 

Level 15
Apr 21, 2022 3:31:14 PM

IRS Regulations

According to the IRS, any lawsuit settlement proceeds that a court awards for physical illness or injury are non-taxable. This includes wrongful death settlements, since the damages are imposed due to a court’s finding that a third party is responsible for the physical illness or injury that resulted in death. To qualify for this exception, the settlement must be compensatory, meaning that it must be a form of compensation for the pain and suffering caused in the case.

Since compensatory proceeds are non-taxable, they have no impact on a federal tax return. However, if there are any additional proceeds that are awarded such as punitive damages, payments for emotional distress, or awards for lost wages, those payments are considered income and are subject to income tax. Punitive damages are additional financial awards that a court may give to the family of a deceased or injured person in cases where the company or individual responsible for the death showed gross neglect or disregard.

https://ttlc.intuit.com/replies/7449321

 

Thus you have no income to report on an income tax return so you don't need to file an income tax return unless you have another reason to file it.