by 
MIKA19
ANSWERS: 5
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Yes. All forms of income are taxed, with rare special exception.
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I'm not sure But I think its falls under the same umbrella as insurance payouts which are not subject to taxes
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No. Personal injury settlements are not considered income. The exception would be if some part of the settlement amount is specifically designated as being for lost wages/income; that portion would be taxable. If it is just a lump sum payment, however, without any designation as to what specifically is being compensated,none of it qualifies as income and you need not claim it on your tax returns.
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I would definitely contact a local attorney to find out about any local laws that may affect taxable income for settlements. If you had legitimate out of pocket expenses that are reimbursed, such as medical costs - often times there are deductions that can be made. Some times small and some times large. Obviously, I would have to assume that in many states, lost wages income is going to be taxed as normal. Joel McLaughlin http://www.robertreeveslaw.com
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no personal injuries are not taxable. however if the settlement is parted,for example you get punitive damages as well as personal injuries damages, only the punitive damages is taxable therefore yes, and no!
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