Legal Question in Tax Law in Virginia

Income Tax on a Claim Settlement
Is there income tax on a claim settlement due to an accident?
The accident occured in Virginia but I live in Tennessee.

Asked on 3/27/06, 1:21 pm

1 Answer from Attorneys

Dr. Michael A. S. Guth Tennessee Attorney at Law Assists Pro Se (without a lawyer) Parties

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Re: Income Tax on a Claim Settlement

The general rule has been that compensatory damages are nontaxable, but punitive damages are taxable as miscellaneous income.

http://michaelguth.com

Answered on 3/27/06, 1:59 pm

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