What is taxable surrounded by Personal injury settlement underneath the US levy code?

I'm suing my landlord/his insurance company, because a few years ago I fell down a common stairwell after the landlord have removed the carpeting, but not the nails. I have a honest personal injury attorney, but she's not sure about tax question.
Answers:
How well brought-up can a personal injury attorney be if he doesn't understand the tax implication of a settlement? It seems that would be a basic consideration when contemplating a settlement.
u don't have to wages taxes on the amount awarded for personal injury. punitive damages must be included in your gross income. if you have compensatory damages, you exclude the amount given for physical personal injury. Source(s): Accounting student, West's Federal Taxation
the money awarded is non taxable. now bear surrounded by mind that should you have any capital gain on it that indubitably is.
you do not have to declare the award surrounded by your ta return.
i hope this answers your question.


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