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The general rule is that lawsuit settlements are taxable if they replace taxable income. Taxable settlements/awards will be for: lost wages non-physical injuries (discrimination) interest on the judgment insurance reimbursements for medical expeses deducted in previous years to the extent of tax benefit punitive damages Non-taxable settlements/awards will include: compensatory damages if the plaintiff has an actual physical injury property damage (limited by basis) warranty claims unlimited emotional distress IF there is a physical injury [if no physical injury, tax-free award is limited to actual medical expenses for treating the emotional distress] victim reparations disaster relief payments
So your civil judgement award will be taxable(depending on the nature of income it was related to). Interest included is also taxable as interest income.
Here is a link to publication 4345 for your reference
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.