Settlements & Compensation

Last reviewed: October 2026 · How we research: How We Research Short answer: if your settlement compensates you for a physical injury or physical sickness, it is generally not taxable under federal law, and that includes the part for lost wages and pain and suffering. What usually is taxable: punitive damages, interest, emotional distress damages

Last reviewed: October 2026 · How we research: How We Research “How long will this take?” is usually the second question people ask after “how much is my claim worth?”, and the honest answer is that it depends. A minor injury claim with clear fault can be wrapped up in a few months. A serious