I recently settled a lawsuit for product liability in which the agreed-upon settlement was for actual proven damages (the cost of repair), plus a component for degradation of and loss of use of the item, plus a component for my hassle in obtaining repairs. In addition to my costs in the legal process itself.
Am I correct in the assumption that the money (mid-5-figures) is tax-free?
Am I correct in the assumption that the money (mid-5-figures) is tax-free?