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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1650
Experience:  Certified Public Accountant
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I received a settlement from the Actos class action lawsuit.

Customer Question

I received a settlement from the Actos class action lawsuit. This medication caused bladder cancer and i have had 3 operations and chemo. will I be required to pay tax's on this money ?
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: what do you need to know?
JA: Is there anything else important you think the accountant should know?
Customer: The lawyers said there wouldn't be any tax forms sent.
Submitted: 6 months ago.
Category: Tax
Expert:  Mark Taylor replied 6 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 6 months ago.

It sounds like the settlement was for physical harm. Generally, settlements for physical harm are not taxable. If you did not claim medical expenses on schedule A of your tax return, then the entire amount of the settlement would not be taxable. However, if you claimed a benefit for the medical expenses on Schedule A then this portion would be taxable.