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If it was to reimburse you for expenses, it is not taxable.
Let me know if you still have questions.
The following links may help you....the sites offer a full explanation about settlement cases:
Market Segment Specialization Program (MSSP)
MSN Money - Win in court without losing to the IRS
Peace, Love & Happiness,
The Mystic Wave
It appears it is a medical malpractice case...if so, there is no tax due on this...(personal injuries)....
Because your settlement was for personal injury, there is no tax due. You do not need to include it in your income.
Please let me know if you still have questions.