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Ask Dave

Tax on Injury Settlement?

A caller asks if a personal injury settle he received is taxable.

QUESTION: A listener says he received a personal injury settlement last year.  Is that taxable?

ANSWER: Read what Norm "The Tax Man" Rollins says:

Usually personal injury income is not taxable.  It is reimbursement for your medical expenses, damage and repair, and pain and suffering.  If there are punitive damages or if the settlement includes loss of wages, that can be taxable.  In purely personal injury settlements, the income is not taxable.

Tax Pro or File Your Own?

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Tax Pro or File Your Own?

Use this free quiz to help you decide which tax filing method is right for you.
 
Take the Quiz

Tax Pro or File Your Own?

Use this free quiz to help you decide which tax filing method is right for you.
 
Take the Quiz