Let me add that i was not working or had any income at the time of the accident so i did not lose any wages
Then that would appear to overcome one of the potential hurdles. I think (and I believe the others who've answered would agree) that in order to avoid potentially expensive tax consequences, it may be best to review settlement terms with a tax attorney. Think of it as paying for "peace of mind."
Make sure your settlement agreement properly designates the funds you receive as compensation for your physical injuries.