Your daughter’s physical injury settlement payments are not taxable.
“ IRC Section 104 explains that gross income does not include damages received on account of personal physical injuries and physical injuries.
IRC Section 104(a)(2) permits a taxpayer to exclude from gross income "the amount of any damages (other than punitive damages) received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal injuries or physical sickness
Reg. Section 1.104-1(c) defines damages received on account of personal physical injuries or physical sickness to mean an amount received (other than workers' compensation) through prosecution of a legal suit or action, or through a settlement agreement entered into in lieu of prosecution.”
https://www.irs.gov/government-entities ... -judgments
“ IRC Section 104 explains that gross income does not include damages received on account of personal physical injuries and physical injuries.
IRC Section 104(a)(2) permits a taxpayer to exclude from gross income "the amount of any damages (other than punitive damages) received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal injuries or physical sickness
Reg. Section 1.104-1(c) defines damages received on account of personal physical injuries or physical sickness to mean an amount received (other than workers' compensation) through prosecution of a legal suit or action, or through a settlement agreement entered into in lieu of prosecution.”
https://www.irs.gov/government-entities ... -judgments
Statistics: Posted by HueyLD — Fri Aug 16, 2024 6:11 am