Legal Question in Personal Injury in Florida

Taxation on Judgement Award/Settlement

Is there any government tax on an award/settlement in a civil suit of any kind? In other words, if I win a lawsuit (or settle) and am awarded $1 million in damages, do I get taxed on that?

How about Arbitration? Do awards/settlements get taxed when done thru Arbitration?

Thank you.


Asked on 7/01/02, 12:23 pm

4 Answers from Attorneys
Randall Gilbert Gilbert & Caddy P.A.

Re: Taxation on Judgement Award/Settlement

Ask AccountantGuru

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Answered on 7/01/02, 2:04 pm
David Slater David P. Slater, Esq.

Re: Taxation on Judgement Award/Settlement

Have you thought of asking your attorney?

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Answered on 7/01/02, 2:58 pm
Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: Taxation on Judgement Award/Settlement

I have to assume that you are merely seeking a second opinion because you have already asked your current lawyer representing you in your million dollar case? If I'm wrong, please turn off your computer immediately and go talk with your lawyer --- he or she will be better able to address your concern since he/she knows more about your case than I do. If your lawyer doesn't know, seek the advice of a tax attorney or CPA (certified public accountant). There may be tax consequences but those issues should be dealt with before you enter into any settlement, not after. Good luck.

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Answered on 7/01/02, 4:10 pm
Michael Tobin Michael M. Tobin, P.A.

Re: Taxation on Judgement Award/Settlement

The general rule is that compensation for personal injury claims is not taxable but there are exceptions. The rules do not differentiate whether the receipt is by settlement, arbitration or judgment. Is it payment in compensation for damage or injury ? Your accountant or a tax lawyer should be consulted if in doubt.

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Answered on 7/01/02, 5:05 pm


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