Only compensation for physical injury in a personal injury case is tax free. Compensation for lost wages is taxable. Your money sounds taxable but ask the lawyer.
I am a former federal and State prosecutor and now handle criminal defense and personal injury/civil rights cases. Feel free to check out my web site and contact me at (212) 577-9797 or via email at Eric@RothsteinLawNY.com. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. The above answer is for informational purposes only and not meant as legal advice.
Unless it is compensation for a physical injury, more likely than not, those are taxable.
Below is the IRS link to such:
Herbert Tan, Esq.
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