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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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is money received in a medical malpractice suit taxable

Resolved Question:

is money received in a medical malpractice suit taxable
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

If the settlement you received was entirely for physical injuries, then no portion of the settlement is taxable.

If a portion of the settlement was also for punitive damages, then that part of the settlement would be subject to tax.

The attorney who handled your case should be able to give you a breakdown of how the settlement amount was classified.

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