Settlement Check, is it taxable?

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  • Sherill
    Member
    • Feb 2006
    • 39

    #1

    Settlement Check, is it taxable?

    Client received check - "Pursuant to your signed settlement stmt, ...regarding injuries you sustained from Dexatrim." (Client does not work, now receives Soc.Sec )
    According to TB,3-20, loss of earning capacity caused by physical injury (stroke on right side of body) is NOT taxable.
    No where in the lawyer's letters does it use to the words compensatory or punituve, and a 1099 Misc has not been received by client.
    Is the settlement check taxable or do I need client to call lawyer just to be certain?Thanx
  • ChEAr$
    Senior Member
    • Dec 2005
    • 3872

    #2
    PERsonal injury damages

    are not taxable, and I see nothing in you post to indicate otherwise.
    ChEAr$,
    Harlan Lunsford, EA n LA

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