For legal settlements and awards, the following is taxable:
- All interest on awards is taxable
- All punitive damages are taxable except in certain wrongful death actions
- Because the gross wages are replacing a taxable item, they are taxable
You can enter the settlement in Other Income. See these directions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Sign In
