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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I received a settlement from a lawsuit the money received was

Resolved Question:

I received a settlement from a lawsuit the money received was indicated, in the settlement, as personal injury. Do I need to declare on federal income tax and pay tax on the amount received?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello roosevelt,

Settlements received for personal injury or illness are not taxable and do not need to be reported on your tax return.

http://www.irs.gov/businesses/page/0,,id=7050,00.html#Award2

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