I am getting a settlement from an vehicle accident I was in. Will I be required to pay tax on it?

bclester

I am receiving a settlement check for a traffic accident I was involved and hurt in. Will I have to pay tax on that?

austinb

According to IRS pub 525, court settlements for personal physical injury are not taxable and shouldn't be reported on your tax return.

Any punitive damages (compensation that exceeds the value of damaged property) are taxable and should be reported as miscellaneous income on your return.