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That depends on what the settlement is for… Injury or illness is not taxable, excluding punitive damages or lost wages…settlements on property is not taxable only to the extent of the cost of the repair, but everything beyond that is taxable….. You need to give us more information.
Put simply, way too much.
the $800,000.00 settlement is from drug company because I was prescribed accutane several years ago for acne and come to find out, I got Crohns disease because of it and had to have a large amount of my intestine removed. I am on workmans comp now and can’t work.
If it can be proven that the illness was caused by a wrongful act, then it shouldn’t be taxable.
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