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I received a settlement from a lawsuit the money received was

Customer Question
indicated, in the settlement, as...
I received a settlement from a lawsuit the money received was indicated, in the settlement, as personal injury. Do I need to declare on federal income tax and pay tax on the amount received?
Submitted: 8 years ago.Category: Tax
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Answered in 1 minute by:
2/1/2009
Tax Professional: Merlo, Accountant replied 8 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello roosevelt,

Settlements received for personal injury or illness are not taxable and do not need to be reported on your tax return.

http://www.irs.gov/businesses/page/0,,id=7050,00.html#Award2

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

Thank you.
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
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