In California does a human being hold to recompense taxes on a (physical) personal injury settlement?

I'm not sure what a 1099 form is or if and when I will have to file it for my (physical personal injury) settlement. Any info or input would be greatly appreciated.
Answers:
No, CA conforms to Federal imperative in this area... compensatory reduce to rubble money for personal injury is not taxable income. However, punitive damages and lost wages ARE income for both Fed & CA

You should not send a 1099, as that is required of payers, not payees. If you do receive a 1099misc, the amount should be surrounded by box 3 NOT box 7. You then show it on 1040 line 21 and later deduct the same amount from AGI on procession 36.

Any lost wages should be reported by the payer on form W2 with deductions for Social Sec. & Medicare.


Hank Roitman, EA
Sacramento, CA
Well, on your federal return, you exclude from gross income damages received as compensation for personage physical injury and as the federal returns exclude it from income, I'm sure California does also.


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