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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: A wrongful death lawsuit is a civil case that is filed against a person or business alleged to be legally responsible for causing someoneâs death. The underlying action that caused or contributed to the death can be: negligent or careless conduct, such as a car accident or the commission of medical malpractice.