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attorney Dan Schwartz today were going to answer a viewer question from Bob in Wilmington Delaware bob says I was in a car accident I got a settlement my attorney did not tell me if I need to pay taxes on this and now I find out hes disbarred can you tell me if I need to pay taxes on the settlement proceeds from my personal injury case but the answer is this is not legal advice the answer is if you want me to Ill be happy to review your settlement documents if a lawsuit was filed Ill be happy to review the complaint Ill be happy to look at whatever you have and try and answer your question with some specific details but what I can tell you is generally speaking personal injury settlement proceeds are not taxable if they are proceeds for bodily injury compensation for bodily injury or sickness as a result of a car accident or a slip and fall if you want to take a look at something on the internet the IRS has a publication its called publication 43-45 titled settlements taxability
