I don't know the answer to this. If it is lost wages then it stands to reason that your wages are taxable so this payment may well be taxable. Somebody else will have to provide the answer to this. Sorry.
It is lost wages and bodily injury, pain and suffering. She said it is not for taxes, just something they do, and she doesn't know why. I was mad, but instead of blowing I just said I would get back to her tomorrow to continue the conversation.
