how are taxes handled?

[adevine]

What is the name of your state? Indiana

My husband is participating in a research study for Medtronics. A stent was placed in my husband's aorta which has to be checked annually. Medtronics promised to pay for all associatedmedical expenses for the rest of his life. They have gone back on their word and we have pursued them since 1998 to pay for these expenses. They now want to send us a settlement. How is this affected by taxes? Will there be any? Thank you.

 

[Snipes5]

It must be settlement week around here.

Read the other two threads which have been posted in the last two days about Settlements.

Snipes

 

[Dandy Don]

You can always consult a local CPA or tax accountant about this.

 

[abezon]

Since the original payments would not have been taxable (due to physical injury), the settlement is not taxable. If your settlement includes punitive damages, those are taxable.