$26.95 
Learn more
Submitted By: Jack
Answered: May 13, 2014 8:30 am
Answered: May 13, 2014 8:30 am
I received a legal settlement from an insurance company as a result of my sister’s death in a car accident (I’m her next of kin). Is this taxable to me?
Sorry about your personal loss. The settlement is tax free to you because it is compensation for personal physical injury. However, if any part of the settlement is for punitive damages, those are taxable.
advertisement
Featured Books
Tax Glossary
Defined contribution plan
A retirement plan that pays benefits based on contributions to individual accounts, plus accumulated earnings. Contributions are generally based on a percentage of salary or earned income.
