Taxes on wrongful death suits?

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Taxes on wrongful death suits?

Husband was killed through co. negelience settlement due what type of taxes st. New Mexico.

2007-04-07 08:57:59 · 1 answers · asked by Marilyn G 1 in Business & Finance ➔ Taxes ➔ United States

1 answers

Settlements due to physical injury or illness are not taxable. However, if any portion was earmarked for lost wages, interest, or punitive damages those portions are fully taxable.

My condolences on your loss.

2007-04-07 09:01:56 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋