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  • Jan 26, 2006, 08:10 PM
    slimshadygirl100
    Another question
    I received a settlement check from a lawsuit do I have to file that? And I also received short term and long term disability checks do they have to be filed?
  • Jan 26, 2006, 09:15 PM
    AtlantaTaxExpert
    SlimShadyGirl100:

    Depends what the settlement is for. Compensatory damages (to pay for medical bills) is not taxable. Neither are damages for pain and suffering.

    Punitive damages are taxable, however.

    Disability payments are normally taxable if the disability insurance is paid for by someone else. If you paid for the disability insurance, then the disability payments would not be taxable.

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