compensation for lost wages due to car accident

[Jul21720]

Is a compensation for lost wages due to a car accident subject to Social Security tax? if so, how do I enter it in Pro Series basic?

[BobKamman]

If part of a claim for damages for physical injuries that actually happened, then the entire settlement is not taxable.  

[Jul21720]

Thanks BobKamman, would that be the reason the taxpayer did not get a form 1099?

Taxpayer did receive money to pay for medical expenses and because she was out for 3 months, so; according to your message the compensation is tax free. Is there a Pub that you can refer me to? 

Thanks, I appreciate your help.

[qbteachmt]

Your client would get a W2, if this is Lost Wages replacement. You didn't tell us who paid for this.

[Jul21720]

Sorry about that, payment received from car insurance company

[BobKamman · Accepted solution]

See Pub 4345

https://www.irs.gov/pub/irs-pdf/p4345.pdf