Q: How are structured settlement payments reported on my taxes?

Do I need to report structured settlement payments on my tax return?

A:  Structured settlement payments from personal injury, wrongful death, or workers' compensation claims are generally tax-free and do not need to be reported on your federal or state income tax returns. However, if your structured settlement payments are taxable, such as punitive damages or non-physical injury claims, you must report the income on your tax return. You should consult a tax professional for specific guidance on reporting structured settlement income.