re: Question about settlement and taxes

quote:

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If the physical injuries causes the mental anguish, then the damages paid for mental anguish are NOT taxable.

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Thanks for all the posts. I wasn't completely clear, and that is my fault. The above is our situation.
When the agreement was signed, it was worded that this payment was for physical injuries and mental anguish associated with the accident.

I talked to a CPA today and was told that the attorney sent me a 1099 for the settlement amounts in error, and I contacted the attorney and he is discussing this with his accountant.