lawsuit tax question?

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May 1, 2009
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hi i was just wondering if anyone knows if you get taxed if you win a lawsuit malpractice case against a hospital or do you have to file for it at the end of the year or not
 
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Nov 4, 2009
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Usually awards for personal injury are usually not taxable. They take the place of something else, say, a lost arm. You didn't pay taxes on the arm when you had it, so neither do you when you get money as compensation for the loss of your arm.

Punative damages are different from compensatory damages, however.
 

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