Compensation for Physical Injury
Generally, damages for physical injuries and physical sickness — including related medical costs and pain and suffering — are not taxable under federal law.
Exceptions to Watch
Portions allocated to lost wages, interest, or punitive damages may be taxable, and previously deducted medical expenses can have tax consequences.
Get Professional Advice
Tax treatment can be nuanced. This is general information, not tax advice — consult a tax professional about your specific settlement.
Injured in New York? Injury Claim Team connects you with an experienced New York personal injury attorney at no cost. Call 973-566-5599 or request your free case review — a specialist will reach out within the hour.