I was involved in a bike accident in Oct 06. I'm looking at getting $25000 from the insurance comp of the guy who hit , and $75000 from the insurance comp I was insured with at the time. My question is will I have to pay taxes on this money? I have read that if its a personal injury lawsuite that the money is tax free. Even though I healed up fine (broke my right femur and knee and left tibula/fibula), does this classify as personal injury? All of the medical costs were covered by the other guys insurance company. Just wondering if anybody on here has dealt with this.