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In that case, you'd report the medical expenses related to the incident as miscellaneous (other) income. Punitive damages are taxable except in certain wrongful death cases, as are awards for employment discrimination and injury to reputation (libel, slander, defamation, etc.).
WireImage. Debt: It's claimed he missed three payments before his death. Michael Jackson was âtapped outâ in debt and owed an estimated $400-$500 million when he died, according to a forensic accountant. William R. Ackerman was testifying on behalf of AEG Live as a defence witness in the wrongful death trial when giving a detailed view of Jackoâs finances.