Is money won in a professional liability lawsuit for errors on a personal injury claim taxable?

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1105309

2026-03-27 19:30

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Yes, money won in a professional liability lawsuit for errors on a personal injury claim is generally taxable. The IRS considers such awards as income, including compensatory damages unless they are specifically for physical injuries or sickness, which may be excluded from taxable income. However, it is always advisable to consult a tax professional for specific guidance tailored to individual circumstances.

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