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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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i received award for my fathers wrongful death.is this taxable

Resolved Question:

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

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.

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