IRC §104(a)(2) and Lawsuit Settlement Taxes: What Your Attorney Didn't Explain
Most personal injury settlements are tax-free under IRC §104(a)(2) — but punitive damages, interest, emotional distress in non-physical cases, and attorney fees under the Banks rule can generate surprise tax bills. Here's how to read your 1099-MISC before you panic.
IRS §104 Settlement Tax Personal Injury Settlement