Personal Injury

Forum|Forum|3 years ago
November 16, 2022
2 replies
33 views

Where would I put a personal injury settlement or do I even have to show it on my return? My understanding is that this is not taxable, is that correct?

Paul_W1

Level 5

Hi Paul 9233,

I am Paul as well. I am sorry about your injury. Hopefully you are ok. Most settlements generally are not taxable. The possibility might come in if you are awarded other damages. I am not a legal expert so I cannot even go there. What you might inquire from the attorneys is if they know you would get any 1099-Misc. That is the most common types of other damages or awards. Based upon solely what you have presented, I do not see any taxable event from your post. Wishing you a very good holiday season.

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Clownnewb

Level 2

To address your question about tax implications, I should start by saying I'm not a tax professional, but generally speaking, personal injury settlements are often not considered taxable income in the U.S. However, there are some exceptions to this, such as if your settlement includes compensation for lost wages.
Given that the laws and regulations can be a bit intricate, and seeing that this thread is a year old (meaning tax codes could have changed), I'd highly recommend touching base with an Oakland personal injury lawyer . These lawyers often have experience dealing with the financial aspects of settlements and could give you the most accurate and personalized advice.