My husband got a workers comp settlement in 2007. How will this affect our taxes? Is it tax-free? Will they be sending anything (like a form) we will need to file with our taxes? Any info is appreciated.

I don't believe that Worker's Compensation payments are taxable. If they are, you'll receive a 1099-Form shortly which will indicate the amount that is taxable and/or reportable.

Workmen's compensation is tax-free; do not worry about it.

OK, good. Thank you.

Yes, it is tax free. Here is the info from IRS Publication 17: Your Individual Income Tax
"Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. The exemption also applies to your survivors."

Glad to help!