Thank you for using Just Answer.
I was not certain when I first read your question whether you were looking to report the amount as the payer or the payee.
If you received a W2 in relation to the amount you received based on wages that you missed due to your injury then it is due to the above which came about based on a Supreme Court case, a new federal statute, and two IRS Revenue Rulings that affected the law governing the taxation of settlements and damage awards for employment-related claims.
Basic Rules on Taxation of Settlements and Damage AwardsUnder current law, the general rule is that the plaintiff in an employment-related case is subject to income tax on the entire amount of any settlement or damage award, except for any portion that is essentially reimbursement for medical costs associated with personal physical injury or sickness.Under this rule, damages for pain and suffering, emotional distress, and punitive or exemplary damages are taxable.
I sincerely XXXXX XXXXX this information is helpful to you but suggest if you have further concerns about this subject that you speak with your attorney for clarification on the exact nature of your case,