How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

i received award for my fathers wrongful this taxable

Resolved Question:

i received award for my fathers wrongful this taxable income
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

Settlements for wrongful death fall under the category of personal injury, and they are not taxable income to the recipient.

The amount of the settlement would actually be considered to first be property of your father's estate, however, if your father's estate was less than the threshold allowed before estate taxes are due, then this is not an issue. The current value of an estate must exceed $2 million before estate tax is due.

Payments received from the settlement to the heirs of the estate are never taxable to the heirs.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

Merlo and other Tax Specialists are ready to help you