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  1. #1
    Join Date
    Apr 2010
    Location
    arlington, tx
    Posts
    2

    Default Taxes on Personal Injury Settlements

    My question involves medical malpractice in the state of LA.: I have received a settlement from a malpractice law suit. Do I have to pay any taxes on this settlement?
    Thanks for your help!

  2. #2
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Taxes on Personal Injury Settlements

    Compensatory damages won in a legal settlement are not taxable. Punative damages are taxable.

  3. #3
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Taxes on Personal Injury Settlements

    Quote Quoting Bubba Jimmy
    View Post
    Compensatory damages won in a legal settlement are not taxable. Punative damages are taxable.
    I agree, but I will also add that this probably is not a tax return that you should do on your own.

    Often, these types of settlements break out the awards in multiple catagories, and those catagories generally don't state "compensatory damages" or "punative damages". You probably need a tax pro to help you determine what is compensatory and what is punative.

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