Are Personal Injury Settlements Taxable? Understanding IRS Rules, Exceptions, and What You Owe
September 29, 2010
Are Personal Injury Settlements Taxable? Understanding IRS Rules, Exceptions, and What You Owe
Are Personal Injury Settlements Taxable? The brief answer to the question of "are personal injury settlements taxable?" is "it depends". In most cases, the IRS does not consider a settlement from a personal injury lawsuit to be income. Instead, the IRS considers the settlement to make up for income that was lost as a result of the accident. However, some…