Medical Malpractice

is money won on a medical malpractice law suit taxable by the us govermant? or state gov?

is money won on a medical malpractice law suit taxable by the us govermant? or state gov?

Public Comments

1. Settlements for physical injury or illness are not taxable. However if any portion was earmarked for accrued interest or punitive damages, those portions are fully taxable as ordinary income.