Personal injury settlement? e.g, the settlement predominantly includes medical and pain factor compensation. Can you clearly explain tax consequences? Not clear in forum.

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In a personal injury settlement, you are only taxed on the portion of the award for your lost wages.

The portion of the award for medical expenses and pain compensation are not taxable income.

However, the medical expenses covered by the award cannot be claimed as itemized medical deductions because you have been reimbursed by a third party.

I am sorry you were hurt.

For more information, follow this link: IRS on Lawsuits

I received a 1099r after mistakenly contributing to my IRA twice but withdrew days later to compensate. Do I need to do anything to avoid an adverse tax consequence?

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Personal injury settlement? e.g, the settlement predominantly includes medical and pain factor compensation. Can you clearly explain tax consequences? Not clear in forum.

Personal injury settlement? e.g, the settlement predominantly includes medical and pain factor compensation. Can you clearly explain tax consequences? Not clear in forum.

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Personal injury settlement? e.g, the settlement predominantly includes medical and pain factor compensation. Can you clearly explain tax consequences? Not clear in forum.

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Personal injury settlement? e.g, the settlement predominantly includes medical and pain factor compensation. Can you clearly explain tax consequences? Not clear in forum.

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