Hi,My father-in-law was killed in an auto accident in 2010. He was not properly restrained in his wheelchair and was thrown to the van floor and died as a result of his injuries. We have a lawsuit in progress regarding his death. How will any settlement be taxed?Thanks,Gary

The settlement is to compensate for his personal physical injuries andso would not be taxable.If somehow the settlement specifies he shared in the fault, this couldchange things, but I seriously doubt there is any such statement.

How Is A Lawsuit Settlement Taxed?

Apr 06, 2012 21 Replies

Rate this thread:

D. Stussy 14 years ago

The Tax Court. ;-)

Vote

Bill Brown 14 years ago

If the emotional distress is related to the physical injury then all of it is excludible.

Vote

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required