punitive damages taxable

https://ace-wiki.win/index.php/Are_Punitive_Damages_Taxable%3F_Key_Rules_for_Mesothelioma_Settlements

I always thought punitive damages were a straightforward penalty, but then I learned the IRS taxes them as regular income. It means if you win a big award meant to punish the defendant, you still owe taxes on that windfall, which can really cut into what you actually receive after a lawsuit.