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Would I have to pay taxes on a settlement due to physical injury? I didn't think so but my paper from the law firm say to consult a tax representative on this.

Forum|Forum|6 years ago
June 7, 2019
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Best answer by bwa

but my paper from the law firm say to consult a tax representative on this.

They all say this because they don't want to give tax advice. However, based on what you posted, it would not be taxable (and the legal fees would not be deductible.)

Rainman12

Employee

Could be taxable; depends on how and why it was paid. If through an insurance policy where you paid premiums, normally not taxable. Did/will you get a W-2 or 1099 form? That will help clarify ...

A

andrealeichtAuthor

I did pay premiums yes. No I was never sent a W2 or a 1099 form.

Rainman12

Employee

W-2 and 1099 forms are how IRS knows you got taxable money. Ask source of money if forms were or will be issued ...

A

andrealeichtAuthor

Will do, thanks!

B

bwaAnswer

Employee

but my paper from the law firm say to consult a tax representative on this.

They all say this because they don't want to give tax advice. However, based on what you posted, it would not be taxable (and the legal fees would not be deductible.)