Are injury settlements taxable in Florida?

Florida has no state income tax, so the question is federal.

Generally not taxable: compensation for personal physical injuries or physical sickness, including medical expenses, pain and suffering tied to physical injury, and lost wages that are part of a physical injury recovery.

Generally taxable: punitive damages, interest on a judgment, and compensation for emotional distress not attributable to a physical injury.

A complication worth knowing. If you deducted medical expenses on a prior return and are later reimbursed for them through a settlement, that portion may be taxable under the tax benefit rule.

Structured settlements have their own treatment.

How settlements get allocated among categories can matter, and that allocation is something to think about before signing rather than after.