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?
Greg M
No, Insurance proceeds are never taxable unless there are some specific reasons. You should not receive any forms regarding the income.
No4
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.
Orignal From: Will I have to pay taxes on medical malpractice settlement?
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