Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.
The tax ramifications are as follows:
Disability - not taxable
Social Security Disability and Medicare - A portion of the Social Security may be taxable depending on your other income and filing status. There is no way to calculate this until your tax return is prepared. The rest in not taxable.
Pain and suffering - not taxable.
Legal fees will be deductible in the relationship they have as a percentage of taxable settlement.
Lost of earnings - Taxable as this is income you would have earned had the injuries not been incurred.
If you need additional assistance, please feel free to ask. I do recommend that, at least for this year, your tax returns be prepared by a qualified tax professional. Those fees will be tax deductible in the year you pay them.
The legal fees portion that is deductible is a relationship of total legal fees to settlement amounts. For example if the settlement was for $100, taxable portion was $30, and legal fees $20 The deductible legal fees would be (30/100=.3X20= 6.667) $7 after rounding. I use 100 as the basis for the example so it will be simple for you to plug in your own numbers.
Yes, the taxable amount of the settlement ( the loss of income portion) IS based upon the amount of the settlement.