Originally Posted by
Midwest Player
Taxes on Lawsuit Settlement
I believe no income taxes are due on a personal injury settlement, but a settlement for lost wages would be taxable. I also believe punitive damages are taxable. If you get a lawsuit settlement have them break it down by each type. Better discuss this with your accountant.
Also if you get reimbursed for expenses your health insurance paid for they might want their money back if you recovered in a lawsuit. They don't like one to double dip.
Best of luck in your lawsuit.
Thank you MWP for the information and good wishes. Anything happening is well down the road, but it is good idea to be thinking of some of these things and start preparing. Having never been through anything even remotely like this, I appreciate all the information and advice I have received. I am in good hands, but still like to be as informed as I can be so I can ask the right questions.