Do you have to pay any sort of taxes on a personal injury award? 5 Answers as of February 27, 2011
My mother has been informed that she does not have to pay taxes, but we would like verification. My mother was awarded a personal injury amount under $20,000. She is retired and was wondering if she needs to pay taxes on this lump sum?
LT Pepper Law
| Luke T. Pepper
If the award is considered compensatory, she will not have to pay taxes. If they are punitive, she will have to pay taxes. This is amount probably falls under compensatory.
Answer Applies to: Pennsylvania
Meyer & Yee, LLP
| Kent W. Meyer
Amounts received for personal injury are not taxable. Amounts that replace income are taxable.
Answer Applies to: California
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