Usually, money received as a result of a wrongful death lawsuit is not taxable. This money is generally not treated as income such that it would be taxable. There are some exceptions to this general rule, including in cases where the estate and beneficiaries receive “punitive damages,” a type of payment to the estate that is meant to punish a wrongdoer. Exceptions to the general nontaxability of wrongful death suit awards may also be made for money representing accrued interest, payments for some types of emotional distress, expenses that were previously deducted by the deceased individual, and so on.