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.

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