The IRS treats almost everything as income, with a notable exception for "personal injuries or sickness." See I.R.C. section 104 for exclusions from gross income.
Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to... more
Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.