If you were in a car accident as a result of someone else's fault and ended up breaking some bones along with other medical problems, you probably had to miss work and deal with significant pain and suffering. You go through doctor visits, physical therapy, imaging studies, some nightmares, counseling, and overall it amounts to a very stressful time. Eventually your case settles and all of your damages are reduced to a monetary amount. Do you then have to pay taxes on that amount?

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