Is a settlement for physical sickness taxable?

Erick

I received a settlement for personal physical sickness.

Where do I file that at on your FreeTaxUSA platform? Miscellaneous section? If not there, then where? I was told to use IRC Section 104(a)(2)

MaryM

Hello Erick,

If your settlement was for physical sickness and you did not take an itemized deduction for medical expenses related to the injury or sickness in prior years, the settlement is non-taxable.

The IRS provides more details on the taxability of settlements that may be helpful to review depending on all the details of the settlement. You can view that information here:

https://www.irs.gov/pub/irs-pdf/p4345.pdf

Erick

Thank you MaryM, for your prompt answer.

I did not take an itemized deduction for medical expenses related to the injury or sickness in prior years.

I will go to the link you provided and review any information there, that is related to the details of my settlement.

Thanks again, Merry Christmas and Happy Holidays! 🤶🌲🎁