According to the Internal Revenue Service, personal injury settlements or awards are not considered income and are, therefore, not taxable. However, if you deduct some of your medical expenses from your injury in a previous year’s return, you must include the portion of the deducted medical expenses as income in the taxes filed for the year you received the award.
Additionally, the court awarded punitive damages—which are damages unrelated to your expenses, and are awarded to punish a defendant for extremely egregious behavior—this portion of your award is taxable.
Speak with a tax professional to ensure you don't run afoul of any tax laws.