Are medical malpractice settlements taxable in Georgia?

Are medical malpractice settlements taxable in Georgia?

Medical malpractice settlements in Georgia—governed by O.C.G.A. § 51-1-27 and related provisions—follow the same tax analysis as other physical injury settlements. Compensatory damages for physical harm caused by negligent medical care are excluded under IRC § 104(a)(2). The Georgia Legislature has also enacted O.C.G.A. § 51-13-1 addressing the collateral source rule in med-mal cases, which affects settlement structure.