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In that case, you'd report the medical expenses related to the incident as miscellaneous (other) income. Punitive damages are taxable except in certain wrongful death cases, as are awards for employment discrimination and injury to reputation (libel, slander, defamation, etc.).
Settlement for punitive damages in particular, cannot be excluded from gross income and are therefore taxable. In general, settlement received as a compensation for physical injury, viz. dismemberment, disfigurement or accidental death, and distress on account of physical injury is exempt from tax.