Q. I’m expecting to receive a settlement from an auto accident. How would those funds be taxed? — Recovering A. We hope you weren’t injured in the accident and that this settlement will make you whole. There are five different types of settlements as a result of an auto accident: 1. Reimbursement for physical damages to your car; 2. Reimbursement for lost wages; 3. Medical reimbursement for bodily injury to yourself; 4. Reimbursements for pain and suffering due to your physi