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?

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David Hoines Law
David Hoines Law | David Hoines
Usually not.
Answer Applies to: Florida
Replied: 2/27/2011
LT Pepper Law
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
Replied: 2/21/2011
Law Office of Harry Gordon Oliver II
Law Office of Harry Gordon Oliver II | Harry Gordon Oliver II
If the payment is for personal physical injury, it is not subject to US income tax.
Answer Applies to: California
Replied: 2/18/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
If the award if for strictly personal injury it is not taxable.
Answer Applies to: Pennsylvania
Replied: 2/18/2011
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
Amounts received for personal injury are not taxable. Amounts that replace income are taxable.
Answer Applies to: California
Replied: 2/18/2011
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