Will I have to pay taxes on medical malpractice settlement?

13.February, 2009

I won a settlement from a Medical Malpractice claim where I was not given anestheisa or pain medicine for an emergency c-section. Does this count as physical injury or sickness in order to be exempt from paying taxes?

Compensatory damages are not taxable, but punitive damages are. If a portion of the damage award was punitive, then that portion should be reported as income.

Posted by: admin in: Medical Malpractice 2 Comments »

2 Comments für “Will I have to pay taxes on medical malpractice settlement?”

  1. Greg M sagt:
    13.February, 2009 um 5:39 am

    No, Insurance proceeds are never taxable unless there are some specific reasons. You should not receive any forms regarding the income.
    References :

  2. No4 sagt:
    13.February, 2009 um 5:55 am

    Compensatory damages are not taxable, but punitive damages are. If a portion of the damage award was punitive, then that portion should be reported as income.
    References :

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