There are ways that you may minimize the taxes you’ll pay, such as:
Creating an itemized settlement to go over the losses a recovery is
repaying
Structuring your settlement in a way that allows it to be paid to you
over
time, so you don’t have a hefty tax bill during a single tax season
Using exemptions and deductions to reduce the tax burden
These and other options may be available to help reduce what you owe and
protect your income.