Are wrongful death settlements taxable in Georgia?

Are wrongful death settlements taxable in Georgia?

Generally, wrongful death compensatory damages paid to surviving family members are excluded from income tax under IRC § 104(a)(2) because they are paid “on account of” the decedent’s physical death. This applies whether you filed your wrongful death action in DeKalb County State Court, Fulton County, or any other Georgia court. Punitive damages, however, remain taxable. Additionally, if the estate recovers money through the companion survival claim (for pre-death medical expenses), those recoveries flow through the estate and may have different tax treatment.