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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.).
A: The type and amount of damages that survivors can collect in a wrongful death case is different from state to state. Generally, family members and/or the deceased personâs estate can typically receive compensation for: the amount of financial support the deceased person would have provided if they had lived.