No, wrongful death settlements are non-taxable. They are unlike most civil suits which are taxed by the IRS. Personal injury settlements, on the other hand, are held to a different standard than any other civil suits. Because the injury occurred as a result of an accident, and a majority of the money usually goes toward medical bills, the IRS cannot tax the settlement money. Therefore, personal injury resulting in death is non-taxable by the IRS.
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